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2006 North Carolina
Consolidated Annual Action Plan
Participating Agencies:
North Carolina Division of Community Assistance
North Carolina Housing Finance Agency
North Carolina Department of Health and Human Services, Office of Economic Opportunity
North Carolina Department of Health and Human Services, AIDS Care Unit
Amended 3- 31- 06
2006 Consolidated Annual Action Plan - Amended
March 31, 2006
Table of Contents
Executive Summary........................................................................................................................ .........
3
Consolidated Planning Process.................................................................................................................
5
Resources & Programs to Meet North Carolina’s Housing Needs ..........................................................
6
North Carolina’s Housing Resources ................................................................................................
6
North Carolina’s Housing Programs..................................................................................................
8
Table: Housing Resources by Funding Source & Administrating Agency............................
8
North Carolina’s Housing Needs.......................................................................................................
9
Geographic Distribution...................................................................................................................
11
Matching Requirements................................................................................................................... .
11
Housing Activities to be Undertaken........................................................................................................
12
Table: Federal Funding through the Core Programs – Rent Assistance and Household Services....................................................................................................................... ...........
12
Table: Federal Funding through the Core Programs – Acquisition, Rehabilitation, Production, and Related Infrastructure...................................................................................
13
Summary of Households to be Assisted............................................................................................
15
Chart: Most of the Funding will be Used for High Priority Needs........................................
15
Chart: Most of the Households to be Assisted are High Priority Needs Households.............
15
Housing and Service- Related Objectives..........................................................................................
16
Other Actions........................................................................................................................ ..................
17
Fair Housing Activities.....................................................................................................................
17
Anti- Poverty Strategies.....................................................................................................................
18
Capacity Building and Technical Assistance....................................................................................
19
Interagency Collaboration & Coordination.......................................................................................
21
Addressing Weaknesses in the Current Housing Delivery System...................................................
22
Legislative Initiatives.................................................................................................................... ...
24
Lead- Based Paint Hazard Activities..................................................................................................
24
Descriptions of Programs....................................................................................................................... .
26
AIDS Care Unit Programs.................................................................................................................
26
DCA Programs....................................................................................................................... ..........
27
NCHFA Programs....................................................................................................................... .....
29
OEO Programs....................................................................................................................... ..........
32
CDBG Program Report ...........................................................................................................................
33
ESG Program Report......................................................................................................................... ......
41
HOME Program Report......................................................................................................................... ..
46
HOPWA Program Report.........................................................................................................................
51
Public Participation.................................................................................................................. ...............
54
Applications and Certifications................................................................................................................
60
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 2
Executive Summary
This document serves as North Carolina’s application to the U. S. Department of Housing and Urban Development for the following funding for housing- related projects:
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$ 26.6 million in Community Development Block Grant ( CDBG) funds, to be administered by the Department of Commerce, Division of Community Assistance,
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$ 20 million in HOME Investment Partnership Program ( HOME) funds, $ 680,000 in American Dream Downpayment Initiative ( ADDI) funds, and additional HOME match and Home match interest income to be administered by the North Carolina Housing Finance Agency,
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$ 2.4 million in Emergency Shelter Grant ( ESG) funds, to be administered by the Department of Health and Human Services, Office of Economic Opportunity, and
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$ 2.01 million in Housing Opportunities for Persons With AIDS ( HOPWA) funds, to be administered by the Department of Health and Human Services, AIDS Care Unit.
The State’s housing needs have been prioritized in the following categories1:
High Priority Need
Medium Priority Need
Lower Priority Need
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Homeless Families and Individuals
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Nonhomeless Persons with Special Needs
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Urban Renters Earning 0- 30% of MFI
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Rural Renters Earning 0- 50% of MFI
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Existing Urban Homeowners Earning 0- 30% of MFI
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Existing Rural Homeowners Earning 0- 50% of MFI*
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Urban Renters Earning 31- 50% of MFI
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Rural Renters Earning 51- 60% of MFI
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Existing Urban Homeowners Earning 31- 50% of MFI
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Existing Rural Homeowners Earning 0- 50% of MFI*
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Urban Renters Earning 51- 80% of MFI
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Rural Renters Earning 61- 80% of MFI
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Existing Homeowners Earning 51- 80% Median Family Income
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Potential Homebuyers Earning 30- 80% of MFI whose needs are not met by the market
* Existing Rural Homeowners are differentiated in priority by type of activity and/ or type of household ( elderly are considered high priority, non- elderly medium priority)
Distribution of Funds by Priority Need Category$ 0$ 5,000$ 10,000$ 15,000$ 20,000$ 25,000$ 30,000DCANCHFAOEOACUFunding ( in thousands) HighMediumLow
1 Urban areas are defined as those that qualify as entitlement areas for CDBG funds. All other areas of the state are considered rural.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 3
From the four federal programs, 65% of the funds are targeted to households in a High Priority Need category, 23% are targeted to households in a Medium Priority Need category, and 12% are targeted to households in a Low Priority Need category.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 4
The Consolidated Planning Process
The Consolidated Plan serves as the application for the State to receive federal funds for four programs: the Community Development Block Grant ( CDBG), the HOME Investment Partnerships Program ( HOME), the Emergency Shelter Grants Program ( ESG), and the Housing Opportunities for Persons with AIDS Program ( HOPWA). It is a collaborative effort between the four state agencies receiving the funds from the U. S. Department of Housing and Urban Development. In addition to being an application, the Consolidated Plan serves as a planning document that addresses the major housing and community development needs affecting North Carolina communities, determines priorities for addressing those needs, and lays out an annual strategy for using the resources available. Although the state cannot meet all of the need, it can strategically invest its limited resources to address and alleviate some of the need.
2005 Consolidated Annual Action Plan
Three basic goals underlie the Consolidated Plan:
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to provide decent and affordable housing,
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to provide a suitable living environment, and
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to expand economic opportunity.
The primary means through which these goals are achieved is the provision of affordable housing. Each agency operates programs that help to fulfill these goals, while meeting housing and service- related needs statewide.
The first step in the planning process was the creation of the North Carolina Consolidated Plan 2006- 2010, in which major housing and community development needs affecting the state were identified. Where available, quantitative data on needs were examined. The plan was also built on the state’s experience in administering the four programs. The 2006 Consolidated Annual Action Plan is based on the North Carolina Consolidated Plan 2006- 2010 and the priority needs identified in that plan.
This draft was made available for review on October 4, 2005 on the website of the Division of Community Assistance at www. ncdca. org, and the web site of the North Carolina Housing Finance Agency at www. nchfa. com. Copies of the plan were distributed to federal depository libraries across the state. Furthermore, copies of the plan were available by contacting DCA. A public hearing will be held on October 6, 2005 and comments received on this draft through November 4, 2005. The final draft will be submitted to the U. S. Department of Housing and Urban Development on November 15, 2004.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 5
Resources & Programs to Meet North Carolina’s Housing Needs
North Carolina’s Housing Resources
( Section 91.220( b)( 1))
This year, the State proposes to assist over 4,100 households and 36,000 homeless individuals and families through the four Department of Housing and Urban Development programs that fund the construction/ rehabilitation of housing units, home buyer assistance for existing housing, rental assistance and some housing- related services. These 4 programs are:
􀂃
The Small Cities Community Development Block Grant Program ( CDBG)
Funds help local governments improve the housing stock and infrastructure of deteriorating residential neighborhoods, support public services and homeownership programs, install water and sewer facilities for residential areas or job- creating industrial sites, provide loans to large and small businesses, and increase the capacity of local non- profits to assist local governments in the furtherance of these goals. The N. C. Department of Commerce’s Division of Community Assistance ( DCA) administers CDBG funds for housing and community development activities, while funds for economic development activities are administered by the N. C. Commerce Finance Center. The State expects to issue grants totaling approximately $ 26.6 million in CDBG funds for housing related activities in 2006.
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The HOME Investment Partnerships Program ( HOME) and The American Dream Downpayment Initiative Program ( ADDI)
HOME Funds help local governments, nonprofit organizations, and for- profit developers build or improve affordable housing. ADDI Funds help low- income first- time homebuyers to purchase affordable homes. Both HOME and ADDI are administered by the N. C. Housing Finance Agency. The State expects to receive $ 20 million in HOME funds and $ 680,000 in ADDI funds during 2006.
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The Emergency Shelter Grants Program ( ESG)
Funds help local governments and nonprofit organizations support emergency shelters and transitional housing for the homeless, provide essential services, and prevent homelessness. ESG is administered by the Office of Economic Opportunity in the N. C. Department of Health and Human Services. The State expects to receive $ 2.4 million in ESG funds during 2006.
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Housing Opportunities for Persons With AIDS Program ( HOPWA)
Funds help nonprofit agencies meet the housing needs of persons living with HIV/ AIDS and their families. The AIDS Care Unit in the N. C. Department of Health and Human Services administers HOPWA. The State expects to receive $ 2,010,000 in HOPWA funds during 2006.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 6
To conduct housing- related activities, the State uses nonfederal as well as federal funds. The available funding sources can be categorized as follows:
Federal
State
Private Resources
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Community Development Block Grant Program ( CDBG)
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Emergency Shelter Grants Program ( ESG)
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HOME Investment Partnership Program ( HOME)
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Housing for Persons with AIDS Program ( HOPWA)
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North Carolina Housing Trust Fund ( HTF) and HOME Match funds appropriated by the General Assembly
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Housing Credits
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Mortgage Credit Certificates
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Mortgage Revenue Bonds
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 7
North Carolina’s Housing Programs
( Section 91.220( b)( 2))
Housing Resources by Funding Source & Administrating Agency
Name of Program
Administering Agency
Anticipated Funding for FY 06 ( in $ 000s)
Program Directly Administered?
Not administered directly, funds are distributed to…
Federal Funds
CDBG( 1)
Small Cities Community Development Block Grant Program
Division of Community Assistance
26,606
No
Units of local government in non- entitlement areas
HOME & ADDI
Down Payment Assistance Program
NCHFA
653
No
Private mortgage lenders
HOME
IDA Loan Pool Program
NCHFA
777
No
Nonprofit organizations and units of local government
HOME
New Homes Loan Pool Program
NCHFA
2,849
No
Nonprofit organizations and units of local government
HOME
Rural Opportunity Mortgage Program( 3)
NCHFA
5,179
No
USDA
HOME
Rental Production Program
NCHFA
5,179
Yes
HOME
Rental Preservation Loan Program( 3)
NCHFA
2,590
Yes
HOME
Self- Help Housing Program
NCHFA
1,657
No
Self- help housing organizations
HOME
Single- Family Rehabilitation Program
NCHFA
4,143
No
Units of local government, nonprofits and regional agencies
HOME
Supportive Housing Development Program
NCHFA
1,036
Yes
ESG*( 2)
Emergency Shelter Grants Program
Office of Economic Opportunity
2.425
FY 06- 07
No
Nonprofit organizations and units of local government
HOPWA*
Housing Opportunities for Persons with AIDS Program
AIDS Care Unit
2,010
No
HIV Care Consortia, nonprofit organizations, adult day care providers, family care homes, and housing authorities
Nonfederal Public Resources ( State Funds)
HTF
Rental Production Program
NCHFA
4,500
Yes
HTF
Supportive Housing Development Program
NCHFA
3,000
Yes
HOME Match
Key Program ( TBRA in partnership with DHHS)
NCHFA
2,800
Yes
GA Appropriation
Home Protection Pilot Program
NCHFA
700
No
Counseling agencies
HTF and Other Agency Funds
Urgent Repair Program
NCHFA
2,500
No
Units of local government, nonprofits and regional agencies
Private Resources
Housing Tax Credits*( 4)( 5)
Federal and State Housing Credits
NCHFA
149,940
Yes
Mortgage Credit Certificate*
Private Activity Volume Cap Allocation
NCHFA
100,000
No
Private mortgage lending institutions statewide
Mortgage Revenue Bonds*
Mortgage Loan Program
NCHFA
237,500
No
Private mortgage lending institutions statewide
( 1) The CDBG funds in this table and this report are only those funds designated strictly for housing activities; CDBG funds used in the economic development, infrastructure ( excluding hook- ups), urgent needs, and capacity building categories are not included. Total dollar amounts are also exclusive of administration and technical assistance costs.
( 2) Must be used for shelter operations, client services and homeless prevention
( 3) Includes 4% bonds.
( 4) Figure is equity generated, not credits allocated.
* These programs have funding that must be used for a specific housing- related activity and/ or must be targeted for specific populations ( nondiscretionary funding). The other programs' funding may have income restrictions, but the types of housing activity and target population are not restricted ( discretionary funding). 2006 Consolidated Annual Action Plan - Amended
March 31, 2006 8
These funds, along with other private resources, are expected to be available in 2006 to address the program goals, priority needs, and specific objectives described in this plan. The state and private resources, especially the Mortgage Revenue Bonds, Federal and State Housing Credits and Housing Trust Fund, will be used in conjunction with federal HOME and CDBG funds to develop rental housing, rehabilitate existing housing, and provide homebuyer assistance to first- time home buyers. For a complete list of housing and service- related programs administered by these agencies, see the Descriptions of Programs section.
North Carolina’s Housing Needs
For the benefit of the U. S. Department of Housing and Urban Development, our partnering agencies, and the public, the State is asked to draft a housing strategy every five years. The purpose of the strategy is to outline the State’s plans for the next five years for meeting housing and community development needs. The priority needs are based upon housing and population information captured from census data special tabulations, which yield the incidence of certain housing problems ( overcrowding, inadequate plumbing facilities, cost burden, etc.) among the population. A five- year plan also sets the framework from which each year’s annual action plan can be drawn. The Annual Action Plan further details how the State will accomplish its five- year goals during annual program cycles.
This cycle’s five- year strategy, called the North Carolina Consolidated Plan 2006- 2010, has been completed and will be submitted to the U. S. Department of Housing and Urban Development in conjunction with this annual action plan in November 2005. The needs are listed below are those identified through the Consolidated Plan process through quantitative data, qualitative data, and numerous public meetings with major stakeholders and citizens across the state. Because the State cannot possibly meet all of the housing needs with its limited resources, when determining those priority needs it also considered strategic investment and the appropriateness of resources available to realistically meet the needs. Figure 1 on the following page, the North Carolina Housing Priorities Chart, details the state’s housing priorities based upon the Housing Market Analysis and Needs Assessment performed as part of the 2006- 2010 Consolidated Plan.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 9
Figure 1, North Carolina Housing Priorities Chart Homeless PersonsRenters at 31- 50% Renters at 51- 80% Operating Costs for Homeless ProvidersFinancing of Rental RehabilitationFinancing of Rental RehabilitationSupportive ServicesFinancing of New ConstructionFinancing of New ConstructionEmergency Shelter Construction and RehabilitationHomeowners at 31- 50% Homebuyers at 30- 80% in areas whereSupportive HousingComprehensive Rehabilitation needs are not met by the marketNon- Homeless Persons w/ Special Needs** RefinancingIndividual Development AccountsRent Assistance First and Second MortgagesSupportive housing Downpayment AssistanceOperating Assistance Financing of New ConstructionSupportive ServicesHomeowners at 51- 80% where needs areRenters at 0- 30% not met by marketRent AssistanceComprehensive RehabilitationHomeless PreventionRefinancingFinancing of Rental RehabilitationFinancing of New Construction Homeowners at 0- 30% Urgent RepairComprehensive RehabilitationForeclosure Prevention ActivitiesHomeless PersonsRenters at 51- 60% Renters at 61- 80% Operating Costs for Homeless ProvidersFinancing of Rental RehabilitationFinancing of new constructionSupportive ServicesFinancing of New ConstructionFinancing of rental rehabilitationEmergency Shelter Construction and RehabilitationHomeowners at 0- 50% Homebuyers at 30- 80% in areas whereSupportive HousingComprehensive Rehabilitation needs are not met by marketNon- Homeless Persons w/ Special Needs** for the Non- elderlyIndividual Development AccountsRent Assistance Replacement HousingFirst and Second MortgagesSupportive Housing RefinancingDownpayment AssistanceOperating Assistance Residential Water/ Sewer InfrastructureFinancing of New ConstructionSupportive ServicesHomeowners at 51- 80% Renters at 0- 50% Comprehensive RehabilitationRent AssistanceRefinancingHomeless PreventionResidential water/ sewer infrastructureFinancing of Rental RehabilitationFinancing of New Construction Homeowners at 0- 50% Urgent RepairComprehensive RehabilitationReplacement HousingForeclosure Prevention ActivitiesResidential Water/ Sewer Infrastructure ( when danger to public health) ** Includes the following: Persons with DisabilitiesLow- income Elderly PersonsPersons with HIV/ AIDSRuralHighMediumLowUrban
The State will use the federal, state and private resources detailed in this plan to help meet some of the needs above by undertaking a range of activities during the 2006 program year. Most families and individuals affected by the disaster have found permanent housing with the help of a variety of funding sources.
In 2001, the North Carolina Department of Commerce initiated the 21st Century Communities program. The purpose of this program is to support those counties that need assistance in positioning themselves more effectively for community and economic development. The North Carolina Department of Commerce accomplishes this goal by providing funding priority for selected counties above and beyond existing programs such as the William Lee Act. Ten counties were selected in 2002 for the first round of designation, with another six counties being designated in 2004. A third round of 21st Century Communities was selected in the summer of 2005, and those designations will be in effect for 2006. The four counties selected are Burke, Hyde, Montgomery, and Sampson.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 10
Geographic Distribution
( Section 91.220 ( d))
Each program has a unique method of geographic distribution. The funding for the Community Development Block Grant Program is directed to nonentitlement communities across the state. The program funding through the Emergency Shelter Grants Program, HOME Program, and the HOPWA Program is distributed statewide. The funding for the North Carolina Housing Trust Fund, appropriated by the General Assembly, is distributed statewide through programs of the North Carolina Housing Finance Agency.
Matching Requirements
The table below lists the federal and/ or state matching funds requirements for each of the programs.
Program
Federal Matching Requirement
State Matching Requirement
CDBG
The State is required to provide an annual 1: 1 match for federal administrative funds. The requirement is met by the State paying non- CDBG staff salaries.
Concentrated Needs applications are rated for local commitment, though no local match is required for funding. Revitalization Strategies applicants will be required to contribute a local match; the amount of that match has not yet been determined ( guidelines are scheduled for release in January 2006). In the Economic Development Program, all local governments except Tier 1 counties are required to provide a 25% match for the grant. A 5% match is required for Infrastructure grants, though that is waived for 21st Century Communities.
ESG
The State is required to match Emergency Shelter Grant funding received annually with an equal amount of funding from other sources. This requirement is passed to state grant recipients as allowed by ESG program regulations.
Each grantee must match the funding provided by the State with an equal amount of funds or voluntary efforts.
HOME
25% match required. This is a requirement of the State as a Participating Jurisdiction but it is not passed on to recipients under the state programs that are funded with HOME. Some of the State’s required match is appropriated by the General Assembly. The NCHFA provides the rest of the match.
There is no match requirement imposed by the State.
ADDI
There are no federal match requirements for the 2005 ADDI funds.
There is no match requirement imposed by the State.
HOPWA
There are neither federal nor state match requirements for this program.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 11
Housing Activities to be Undertaken
The two tables Federal Funding through the Core Programs, below and on the following pages, show how the four core programs will be used. The tables show the funding amounts ( in thousands of dollars) allocated for each priority need category ( low, medium, high) and show the number of households and individuals to be assisted. In reviewing the tables, it is important to recognize that the state considered strategic investment of its limited resources through its programs, as well as the appropriateness of the resources available to address the priority need categories.
HOPWA will be used to assist households and individuals with housing related services and tenant- based rent assistance ( both short and long term). ESG will provide funds to assist homeless shelters with operating costs, client services and homeless prevention activities. CDBG and HOME are primarily used to produce or rehabilitate housing, provide homebuyer assistance, and develop infrastructure required for housing development.
Federal Funding through the Core Programs – Rent Assistance and Housing- Related Services PriorityAgencyFunding SourceProgramActivityAnticipated Funding in $ 000sActual Households/ Individuals AssistedAssist Homeless Families and IndividualsOEOESGESGSupport Funding for Homeless Service Providers* $ 2,494 6,000 households and 30,000 individualsACUHOPWAHOPWARent Assistance**$ 1,450 1,635ACUHOPWAHOPWAHousing- Related Services*** $ 560 3,000Assist Renters Earning 0- 50% Median Family IncomeNCHFAHOME & MatchKey ProgramTenant Based Rental Assistance$ 2,800 125Total High Priority$ 7,304 40,760TOTAL$ 7,304 40,7* Funding to assist with operating costs of homeless shelters, provision of services to homeless clients and homeless prevention activities. ** For HOPWA, " rent assistance" inlcudes short term rent, mortgage, and utility payments ( STRMU) as well as tenant- based rent assistance ( TBRA) *** Includes housing information, resource identification, supportive services, and operating expenses for dedicated housing facilities. High Priority NeedsAssist Non- Homeless with Special Needs
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 12
Federal Funding through the Core Programs – Acquisition, Rehabilitation, Production, and Related Infrastructure PriorityAgencyFunding SourceProgramActivityAnticipated Funding in $ 000sAnticipated Households AssistedDCACDBGHousing DevelopmentRelated Infrastructure$ 50 3NCHFAHOMESupportive Housing Development ProgramNew Construction$ 518 26DCACDBGConcentrated NeedsRehabilitation, Replacement$ 651 14DCACDBGHousing DevelopmentRelated Infrastructure$ 162 8DCACDBGInfrastructureUtility Hook- Up$ 85 28DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 110 2DCACDBGScattered SitesRehabilitation, Replacement$ 1,128 25NCHFAHOME & MatchSupportive Housing Development ProgramNew Construction$ 518 26DCACDBGConcentrated NeedsRehabilitation, Replacement$ 1,627 36DCACDBGHousing DevelopmentRelated Infrastructure$ 495 83DCACDBGInfrastructureUtility Hook- Up$ 212 71DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 275 6NCHFAHOME MatchPreservation Loan ProgramRehabilitation$ 1,295 633NCHFAHOMERental Production ProgramNew Construction, Rehabilitation^^ $ 2,020 125DCACDBGConcentrated NeedsRehabilitation, Replacement$ 1,953 43DCACDBGInfrastructureUtility Hook- Up$ 255 85DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 6,430 143DCACDBGScattered SitesRehabilitation, Replacement, Urgent Repair$ 5,414 120NCHFAHOME & MatchSingle Family RehabProgramRehabilitation$ 2,735 68Total High Priority$ 25,933 1,545Medium Priority NeedsDCACDBGConcentrated NeedsRehabilitation, Replacement$ 977 22DCACDBGHousing DevelopmentRelated Infrastructure$ 297 50DCACDBGInfrastructureUtility Hook- Up$ 128 43DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 165 4NCHFAHOME MatchPreservation Loan ProgramRehabilitation$ 1,295 633NCHFAHOMERental Production ProgramNew Construction, Rehabilitation$ 2,331 144DCACDBGConcentrated NeedsRehabilitation, Replacement$ 977 22DCACDBGInfrastructureUtility Hook- Up$ 128 43DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 165 4DCACDBGScattered SitesRehabilitation, Replacement, Urgent Repair$ 3,722 83NCHFAHOME & MatchSingle Family RehabProgramRehabilitation$ 1,119 28Total Medium Priority$ 11,304 1,076Assist Non- Homeless Persons with Special NeedsAssist Rural Renters Earning 51- 60% of Median Family Income and Urban Renters Earning 31- 50% of Median Family IncomeAssist Rural Renters Earning 0- 50% of Median Family Income and Urban Renters Earning 0- 30% of Median Family IncomeAssist Rural Homeowners Earning 0- 50% of Median Family Income and Urban Homeowners Earning 0- 30% of Median Family Income^ A portion of the households assisted through DCAs programs will be for those with special needs. DCA is in the process of improving its data collection to incorporate special needs numbers into future plans. ^^ A portion of these units will serve homeless households. The Agency has no way of forecasting how many of these households will be homeless. High Priority Needs^ Assist Homeless Families and IndividualsAssist Rural Homeowners Earning 0- 50% of Median Family Income and Urban Homeowners Earning 31- 50% of Median Family Income
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 13
Federal Funding through the Core Programs – Acquisition, Rehabilitation, Production, and Related Infrastructure ( continued) Low Priority NeedsDCACDBGConcentrated NeedsRehabilitation, Replacement$ 130 3DCACDBGHousing DevelopmentRelated Infrastructure$ 50 8DCACDBGInfrastructureUtility Hook- Up$ 17 6DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 22 1NCHFAHOMERental ProductionProgram New Construction, Rehabilitation$ 829 51DCACDBGConcentrated NeedsRehabilitation, Replacement$ 195 4DCACDBGInfrastructureUtility Hook- Up$ 26 9DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 33 1NCHFAHOME & MatchSingle Family RehabRehabilitation$ 290 7DCACDBGHousing DevelopmentRelated Infrastructure$ 567 32DCACDBGIndividual Development AccountDownpayment Assistance$ 160 80NCHFAHOME & ADDIDownpayment Assistance ProgramHomebuyer Assistance$ 5,179 104NCHFAHOMEIDA Loan Pool ProgramHomebuyer Assistance$ 653 93NCHFAHOMENew Homes Loan PoolHomebuyer Assistance$ 777 40NCHFAHOMERD Leveraging ProgramHomebuyer Assistance$ 290 7NCHFAHOMESelf Help ProgramHomebuyer Assistance$ 2,849 142Total Low Priority$ 12,066 588TOTAL FEDERAL FUNDING$ 56,607 43,969Assist Rural Renters Earning 61- 80% of Median Family Income and Urban Renters Earning 51- 80% of Median Family IncomeAssist Homebuyers Earning 30- 80% of Median Family Income where needs are not met by the marketAssist Rural Homeowners Earning 51- 80% of Median Family Income and Urban Homeowners Earning 51- 80% of Median Family Income where needs are not met by the market
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 14
Summary of Households to Be Assisted2
Of the total funding for housing activities to be undertaken, 58% ($ 30,872,000) of the funding is targeted to the high priority needs, 20% ($ 8,553,000) targets medium priority needs, and 23% ($ 26,510,000) targets lower priority needs. Of the total households to be assisted by funding, 61% of the households are in the high priority need category, 10% are in the medium priority need, and the remaining 29% are in the lower priority need category. The following pie charts summarize these numbers.
Most Households to be Assisted will be High Priority Needs HouseholdsHigh66% Low12% Medium22% High Priority Needs Receive the Majority of Funding High63% Low13% Medium24%
2 These figures and graphics do not include the 36,000 families and individuals that are expected to be assisted using Emergency Shelter grant funds nor the 3,000 households that are expected to be assisted with housing- related services from HOPWA; these activities are considered high priority.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 15
Housing and Service- Related Objectives
AIDS Care Unit
􀂃
To continue involvement with the NC Inter- Agency Council on Coordinating Homeless Programs, Housing Coordination/ Policy Council and NC Department of Health and Human Services Housing Workgroup.
􀂃
To ensure HOPWA Project Sponsors provide short- term rent, mortgage and utility assistance, tenant- based rental assistance, supportive services, housing information, resource identification and operating expenses ( dedicated housing facility) to persons living with HIV/ AIDS and their families.
Division of Community Assistance
􀂃
To target investments toward distressed rural areas and high priority small cities through the Commerce Department’s 21st Century Communities Initiative, State Development Zones, Tier 1 & Tier 2 counties, and support the EDA- funded Comprehensive Economic Development Strategies ( CEDS).
􀂃
To support development of soundly designed affordable rental and single- family housing in appropriate settings.
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To emphasize smart growth principles in CDBG program categories. Priority for funding will be given to projects that demonstrate design excellence, infill development, and more intense use of existing buildings in downtowns and nearby older neighborhoods.
North Carolina Housing Finance Agency
􀂃
To operate home ownership programs:
-
Close 2,200 MRB loans and 250 MCC assisted loans
-
Close 104 Rural Opportunity Mortgage ( ROM) loans in conjunction with USDA’s 502 direct program.
-
Close 142 loans under the New Homes Program, 83 loans under the Self- Help Housing Program, and 40 loans under the IDA partnerships
-
Rehabilitate 103 homes under the Single Family Rehab Program and 600 homes under the Urgent Repair Program
􀂃
To operate rental production programs:
-
Allocate the state's $ 15 million federal Housing Credit volume cap
-
Loan $ 9.6 million under the Rental Production Program
-
Continue the refundable state Housing Credit
-
Finance 10 projects with the capacity to serve around 200 individuals under the Supportive Housing Program
Office of Economic Opportunity
􀂃
To ensure the provision of emergency and/ or transitional housing, essential services, and/ or homeless prevention services to approximately 30,000 homeless individuals and 6000 homeless families. It is anticipated that over 100 nonprofit organizations and three units of local government operating over 140 emergency and/ or transitional facilities in 50 to 55 of the state’s 100 counties will receive funding in FY 2006.
􀂃
To successfully coordinate the 2006 North Carolina Conference on Homelessness, which will provide opportunities for homeless service providers to receive training and technical assistance.
􀂃
To continue its involvement with the North Carolina Interagency Council for Coordinating Homeless Programs ( ICCHP).
􀂃
To work with the ICCHP to implement strategies and policies outlined in the state’s ten- year plan to end homelessness in North Carolina.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 16
Other Actions
Each of the four state agencies will undertake additional actions to further the housing and support services goals of their organizations in the areas of Fair Housing/ Equal Opportunity Initiatives, Anti- Poverty Strategy, Capacity Building and Technical Assistance, Coordination and Collaboration, Housing Delivery Systems, Institutional Structure, Legislative and Public Policy Initiatives, and Lead- Based Paint Hazard Reduction.
Fair Housing Activities
For the 2006- 2010 Consolidated Plan, the Division of Community Assistance contracted with the North Carolina Fair Housing Center to analyze impediments to fair housing choice in North Carolina. This document is available by contacting the Division of Community Assistance directly. In conjunction with what was outlined in the five- year plan, the four agencies that contribute to the Consolidated Plan agree to uphold those and other precepts supporting fair housing, housing choice and equal opportunities through the programs they administer. In carrying our their regular programs and funding cycles, the state agencies list the following ongoing activities and practices relative to promoting and furthering fair housing:
AIDS Care Unit
􀂃
The Unit will continue to expand the Tenant Based Rental Assistance program, which is designed to increase housing choice for low- income persons with HIV/ AIDS and their families.
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The Unit will work with HOPWA Project Sponsors and case managers to ensure that persons living with HIV/ AIDS will have access to a housing care plan to promote permanent/ permanent supportive housing.
Division of Community Assistance
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The Division will continue to implement various strategies, chief of which is to increase local activities that identify and reduce barriers to fair and affordable housing in all localities receiving Community Development Block Grant Program funding.
North Carolina Housing Finance Agency
􀂃
The Agency will continue to ( 1) distribute its Elderly Housing Rights and Consumer Protection Program information brochures, ( 2) provide Fair Housing training in conjunction with its Housing Credit Program Compliance and Service Coordinator workshops, and ( 3) publish Spanish translations of its MRB and MCC Program information.
􀂃
All developers of affordable rental housing financed by the Agency are required to develop and implement Affirmative Fair Housing Marketing Plans, which are reviewed by the Agency for effectiveness and proper implementation. Projects receiving HOME loans must certify that they have developed and adopted affirmative marketing procedures for HOME- assisted housing containing five or more units.
􀂃
The Agency will publicize the availability of its updated guide published in October 2005, Fair Housing for Tenants with Disabilities; Understanding Reasonable Accommodations and Reasonable Modifications. The Guide will also be included in the Agency’s annual training for LIHTC rental property managers.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 17
􀂃
The Agency will solicit voluntary agreements with two more lenders in 2005 to work together with the Agency in ensuring that every first- time home buyer in North Carolina is informed about the Agency’s loan programs during the loan application process.
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The Agency will process preliminary eligibility analysis process to reach 250 prospective homebuyers in unserved areas of the state. Renters will complete a worksheet and the Agency will assess the renters’ eligibility for a mortgage and make a referral to a lender.
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The Agency will work more closely with partners to educate homebuyers, increase the supply of affordable housing, provide assistance with downpayment and closing costs and offer financial options to support HUD’s “ Blueprint for the American Dream”.
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The Agency, in partnership with USDA- Rural Development, will offer 200 leveraged loans to serve low- income households in rural North Carolina through its Rural Opportunity Mortgage program.
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The Agency chairs the Housing Coordination and Policy Council, which is pursuing an effort to evaluate local zoning barriers to affordable housing.
Anti- Poverty Strategies
Division of Community Assistance
􀂃
DCA continues to utilize Small Cities Community Development Block Grant Funds for use in establishing or continuing Individual Development Account ( IDA) programs throughout the state. IDAs are dedicated savings accounts that can only be used for purchasing a first home, education or job training expenses, or capitalizing a small business. In DCA’s program, funding is exclusively for home ownership. Only residents that are members of households below 80 percent of MHI are eligible to participate. In partnership with local governments, IDAs are managed by community organizations and accounts are held at local financial institutions. Participants are introduced into the mainstream financial system, provided credit counseling and homebuyer and financial literacy, and receive match money for down payment assistance upon successful completion of the program.
􀂃
Continuing decline and disinvestment in many neighborhoods that spills over into surrounding areas point to a need for different approaches to rebuilding communities. Many communities riddled with poverty require a comprehensive approach to address their needs, one that allows for flexible funding and activities that cut across traditional DCA programs. Entering its fifth and final year of the first round of funding in 2006, the Revitalization Strategies program allows for a holistic approach to community and economic development enabling local governments to address multiple needs in high poverty areas. This category provides flexible multi- year funding to help alleviate poverty and carry out a long- term, sustainable revitalization strategy in selected target neighborhoods. The first round of communities that were awarded grants in 2001, and are scheduled to receive funds for their fifth year of activities in 2006, are Brevard, Caldwell County, Elizabeth City, Hamlet, Hyde County, Roanoke Rapids, Sanford, Whiteville, and Wilson. Madison County’s program was only for four years, ending in 2005. The second round of RS grants will be awarded in 2006. The guidelines and application will be released in January 2006, with applications due in May and awards made in late summer or early fall 2006. Small planning grants will be provided using 2006 funds, with full funding being made available.
􀂃
In 2006 the Division of Community Assistance will conduct a round table with leaders from across the state in business and economic development to explore ways that CDBG funds can
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 18
best be used to promote small business development as a way to move low- wage and dislocated workers into greater self- sufficiency and out of poverty.
North Carolina Housing Finance Agency
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The Agency will continue to finance supportive rental housing through the federal and state housing tax credit programs and through the Rental Production Program.
􀂃
The Agency will broaden its IDA home ownership initiative to include providing matching funds and second mortgages to IDA participants who will be purchasing homes. The program used to serve households at 200% of poverty and below who were in NC Department of Labor’s IDA program under the federal Assets for Independence Act ( AFIA); it will now serve households participating in any home ownership IDA program in North Carolina.
􀂃
The Agency will continue funding developments that are connected to public housing authorities’ Family Self- Sufficiency Programs through both rental and home ownership programs.
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The Agency will continue funding transitional and permanent housing for the homeless and nonhomeless persons with special needs through the Supportive Housing Development Program.
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The Agency will provide funds to support a homeless policy specialist in the Office of the Secretary of Health and Human Services who will work with the Interagency Council for the Coordination of Homeless Programs.
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The Agency will continue to operate its Home Saver Loan Program that incorporates a Job Loss Feature to help borrowers who have become involuntarily unemployed to maintain their home.
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The Agency will be administering the Home Protection Pilot Program, funded in 2004 by a $ 1.75 million special allocation from the General Assembly and in 2005 by a $ 700,000 allocation. This program will create a loan pool to help prevent foreclosures due to job loss in targeted counties. It will also strengthen the housing counseling network.
Capacity Building and Technical Assistance
AIDS Care Unit
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The Unit will provide technical assistance workshops, planning meetings, and one- on- one technical assistance to assist organizations with items such as resource development and housing information
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The Unit will continue to utilize technical assistance from the Supportive Housing Collaborative and HUD Field Officer to strengthen administration of North Carolinas HOPWA program.
Division of Community Assistance
􀂃
The Division will continue to implement the Capacity Building program for nonprofit organizations. Grants of up to $ 75,000 will be available to each organization. Nonprofit organizations that receive capacity building funds are expected to develop projects and apply for CDBG funding in partnership with their local governments within two years of award.
􀂃
Technical Assistance funds for 2006 will concentrate on developing the professional skills and capabilities of local community development grant administrators. DCA and the School of Government are assessing the current demand for a professional certification program for administrators of CDBG grants. This program, which may be offered in 2006, will lead to a certificate of completion that assures local governments that the people they engage to administer community development grants meet and maintain high professional standards of knowledge, ethics, and competence.
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March 31, 2006 19
North Carolina Housing Finance Agency
􀂃
The Agency’s Home Ownership Business Group will continue working with the Real Estate Commission to provide continuing education classes for real estate professionals.
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The Agency will continue to provide monthly lender training sessions throughout the state to educate mortgage professionals about the Agency’s 100%, below- market- rate loans, with and without downpayment assistance.
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The Agency’s Rental Investment Business Group has statewide responsibility for Contract Administration of the U. S. Department of Housing and Urban Development’s Section 8 Project- based Rental Assistance Program, which utilizes over 600 rental developments with over 21,000 housing units in North Carolina. The Agency has partnered with Quadel Consulting Corporation to manage the contract administration duties. Rental development owners will receive ongoing technical assistance on the U. S. Department of Housing and Urban Development Section 8 regulations.
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The Agency’s Strategic Investment Business Group will continue to collaborate with the Advanced Energy Corporation ( AEC) to train contractors and developers ( both nonprofit and for- profit) in techniques of building high performance houses. This training focuses on the interrelationships between house systems and the effective use of pressure diagnostics ( blower doors, duct blasters, manometers, etc.). Trainees have produced 265 units under the Agency’s New Homes and Self- Help loan pools. The Agency anticipates producing 200 more in 2006, all of them sold with 2- year guarantees of comfort and very low heating and cooling costs.
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The Agency will continue to administer its fair housing and service coordinator trainings in conjunction with its rental investment programs. Designed for service coordinators, housing managers, supportive service providers, and others who work with the elderly or special needs residents, these workshops have covered topics that include aging, the basics of service coordination, legal issues and housing, and planning community wellness programs.
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The Agency will continue to hold at least one rental development roundtable discussion each summer.
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The Agency will offer six trainings for tax- credit developers, and three trainings for developers using the Rental Production Program.
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The Agency will continue to conduct a Housing Developers’ Workshop Forum at the Agency’s annual Housing Forum. It will also offer sessions on several of its other programs, providing insight, instruction, and technical assistance to the attendees participating in those programs.
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The Agency will be administering the Home Protection Pilot Program, in which a special appropriation of $ 700,000 by the General Assembly in 2005 will be used to strengthen housing counseling in selected counties, in addition to providing for households to prevent foreclosure due to job loss.
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The Agency will develop a construction to permanent loan in partnership with Rural Development to increase affordable housing stock throughout the state.
Office of Economic Opportunity
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The Office will continue to provide staff to coordinate the annual conference on homelessness sponsored by the Interagency Council for Coordinating Homeless Programs ( ICCHP). This conference provides training and technical assistance to over 400 representatives of homeless service providers across the state each year.
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The Office will provide training to all new, approved applicants for Emergency Shelter Grants ( ESG) Program funding in the spring of 2006.
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The Office will continue to promote the coordination of housing repairs through local available resources for families receiving services under the North Carolina Weatherization Assistance Program and the Heating Air Repair and Replacement Program.
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March 31, 2006 20
􀂃
The Office will continue to support housing coordination activities of the Community Services Block Grant program recipients that serve as local Comprehensive Housing Development Organizations.
Interagency Coordination and Collaboration
AIDS Care Unit
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The Unit will continue as an active participant on the Housing Coordination and Policy Council, NC Department of Health and Human Services Housing Workgroup as well as the Inter- agency Council on Coordinating Homeless Programs ( ICCHP).
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The Unit will continue to collaborate with the other NC entitlement cities to ensure consistency among administration of the HOPWA Program.
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The HOPWA Program and Ryan White Program, which are both in the AIDS Care Unit, will continue to work together on leveraging funds as it relates to providing emergency financial assistance to persons living with HIV/ AIDS and understanding that “ housing is healthcare”.
Division of Community Assistance
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The Division will continue to work with other governmental and non- governmental groups such as the North Carolina Department of Labor, the North Carolina Housing Finance Agency, and the North Carolina IDA and Asset Building Collaborative to support and fund IDA and other savings programs in the state.
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The Division will continue to engage other state agencies and federal allies in funding priority projects in 21st Century Communities. The counties of Burke, Hyde, Montgomery, and Sampson were selected in 2005 to be the third round designees for 21st Century Communities, and will receive priority status in 2006.
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If needed, the Division is prepared to react to severe economic crises such as plant closures and mass layoffs by coordinating economic recovery plans and implementing recovery activities.
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DCA, in conjunction with the Commerce Finance Center and the North Carolina Rural Economic Development Center, will initiate a round table discussion in late 2005 to determine the best use of CDBG- Rural Center partnership funds for economic development in 2006.
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The Division will continue to serve on statewide housing policy boards such as the Housing Coordination and Policy Council.
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DCA will continue to collaborate with state and local agencies such as the North Carolina Redevelopment Center and local emergency management and housing agencies on disaster relief projects as they arise.
North Carolina Housing Finance Agency
􀂃
The Agency will partner with Advanced Energy Corporation ( AEC) of Raleigh, North Carolina, to train and assist local partners under two home ownership programs. AEC’s services will include providing low- income homebuyers with two- year guarantees that their heating and cooling costs with not exceed a very low, set level ( as low as $ 18/ month). This broadens the windows of affordability and enhances marketing effectiveness.
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The Agency will continue as a member of the Interagency Coordinating Council for Homeless Programs ( ICCHP).
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The State will continue its collaborative relationship with the Department of Labor by providing matching funds and second mortgages for participants in the Department of Labor’s IDA
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 21
program. It will also broaden its support of IDA programs by developing partnerships statewide with other IDA programs.
􀂃
The Agency will continue to operate the Lead Abatement Partnership Program, responding to actual cases of lead- poisoned low- income children in owner- occupant situations. As cases are referred by the Department of Environment and Natural Resources, the Agency will locate and contract with local rehabilitation organizations to oversee lead abatement and comprehensive housing rehabilitation.
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The Agency will continue to implement the Displacement Prevention Demonstration fund which allows the Independent Living Program and the Lead Hazard Control Branch to assist households facing displacement due to mobility limitations and lead paint poisoning, respectively.
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The Agency’s executive director, A. Robert Kucab, is a board member for Homes4NC, a new foundation created by the NC Realtors Association to support affordable housing initiatives.
Office of Economic Opportunity
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The Office will continue as an active member of the Housing Coordination and Policy Council.
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The Office will coordinate with the North Carolina Housing Finance Agency to continue to promote the use of Urgent Repair program funds with weatherization services being performed through the N. C. Weatherization Assistance Program.
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The Office will actively promote the coordination of local anti- poverty efforts of community action agencies with local, state, and national housing programs.
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The Agency will work with DHHS and local lead agencies to administer the Key Program.
Addressing Weaknesses in the Current Housing Delivery System
AIDS Care Unit
􀂃
The ACU recognizes as a weakness, the 7% cap on administrative costs covered by HOPWA is unworkable and too low, making it difficult for project sponsors meet increased administrative responsibilities and attend much needed training. Underpaying administrative costs could eventually prevent organizations from applying for future funding. However, the Unit continues to promote increased leveraging of HOPWA funds as a strategy for agencies to subsidize administrative costs.
Division of Community Assistance
􀂃
Among its strengths, the Division credits its highly motivated professional staff. Additionally, it mentions the redesigned and new programs, which offer more local communities opportunities to participate. The Division currently operates a Capacity Building program that tries to increase nonprofit participation in the CDBG Program/ Process. The Division also considers its sponsorship of Housing Development training for nonprofits as a strength because it helps to increase their ability to develop better housing projects. Nevertheless, the current state budget conditions limit state support for the agency’s administrative budget; this presents a weakness in the Division’s ability to provide housing services. The Division continues to see training and professional development for staff as an opportunity to improve the delivery of services in 2006.
North Carolina Housing Finance Agency
􀂃
The Agency has private activity volume cap sufficient to meet its 2006 homeownership goals. It offers a variety of loan products ( conventional, FHA, USDA, and VA) and has 90 and 150 day interest rate guarantees. The Agency is currently serving only approximately 70% of the state’s counties with its mortgage products, but intents to expand coverage by expanding third
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 22
party originations, continuing to offer lender incentives to increase loan production in unserved areas of the state and offering a leveraged program in conjunction with USDA Rural Development. The Agency will also increase income and sales price limits and down payment assistance.
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The Agency will continue to provide application workshops and housing development workshops for organizations interested in developing supportive housing for individuals with special needs.
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One of the current weaknesses in the housing delivery system is an overtaxed housing counseling delivery system. Another is the lack of financial assistance for households who unexpectedly find themselves at risk of foreclosure. At the request of the General Assembly, the Agency is administering the Home Protection Pilot Program. This program will provide loans to assist homeowners in target regions who are at risk of foreclosure, and will strengthen the housing counseling delivery system in those areas.
Office of Economic Opportunity
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Following the state’s participation in federal Homeless Policy Academies in 2003 and 2004, the NC Interagency Council for Coordinating Homeless Programs ( ICCHP) formulated a draft state plan to end homelessness. This state- level action plan to end homelessness is seen as one way to ensure that homeless people have a more efficient and coordinated system to assist and support them in their efforts to transition from homelessness to stability.
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Nonprofit agencies and local governments providing shelter and services to homeless people in the state have found it increasingly difficult to secure the funding needed to maintain existing homeless shelters, produce affordable housing for extremely low- income citizens and to improve or, in some cases, establish homeless access to needed services. The only program administered by the State specific to homeless people ( and the only one funding supportive services and operating costs for homeless shelters) is the federally- funded Emergency Shelter Grants ( ESG) Program, administered by the Office of Economic Opportunity.
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In 2004 following the ICCHP’s participation in the second federal Homeless Policy Academy, the Council continued refining the state’s draft Ten- Year Plan to End Homelessness. This draft Plan will be available for public comment in the fall of 2005. As part of that planning process, the Council has facilitated a Discharge Planning Work Group that has developed a preliminary report of recommendations about how North Carolina can reduce the number of persons who are discharged into homelessness from state, or statewide, publicly funded systems. In the fall of 2005 the Council will complete preliminary recommendations on how to increase access for homeless persons to employment and training programs.
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In 2004 the ICCHP began facilitating a collaborative with a membership of homeless service providers and local governments from across the state, in an effort to increase North Carolina communities’ compliance with HUD mandates relating to Homeless Management Information Systems ( HMIS). The Carolina Homeless Information Network ( CHIN) anticipates beginning by the end of 2005, increasing our state’s chances of accessing available federal dollars for housing and services for homeless people.
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Currently, there are 27 different Continuums of Care ( CoC) in North Carolina. In July of 2005, the ICCHP decided to determine the interest of organizations not in CoC areas in the development of a Balance- of- State Continuum of Care application for submission in 2006.
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March 31, 2006 23
Legislative Initiatives
Division of Community Assistance
􀂃
The Department of Commerce will advocate for stronger tools to attract investment, jobs and economic vitality to urban core areas. To this end, DCA is working with the state Economic Development Committee to define and help locate potential development hubs throughout the state and produce new strategies that will create regional economic influence radiating from the newly created hubs.
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The Division of Community Assistance will work to expand the Main Street program.
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In light of current and possible future cuts to federal spending for the CDBG program, DCA will educate legislators to the need for state financial support for community development initiatives in rural parts of North Carolina.
North Carolina Housing Finance Agency
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The Agency plans to work to pass legislation to allow the same first- time homebuyer definition for all programs.
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The Agency plans to work to increase appropriations to the Housing Trust Fund and federal HOME Program match.
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One of the Agency’s legislative initiatives is to develop and administer the Home Protection Pilot Program. This program, allocated special funding from the General Assembly, will strengthen housing counseling in selected counties and create a loan pool to help prevent foreclosures due to job loss.
Lead- Based Paint Hazard Activities
Division of Community Assistance
􀂃
DCA will continue to encourage local units of government to be involved with lead- based paint removal programs. Furthermore, DCA will encourage local governments to work with agencies that are established primarily to mitigate lead- based paint conditions and provide for its removal, as well as address other environmental concerns.
North Carolina Housing Finance Agency
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All HOME- funded programs will continue to be in compliance with new U. S. Department of Housing and Urban Development lead regulations ( 25 CFR Part 35).
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The Agency will continue to participate in a quarterly, ad hoc lead hazards advisory group made up of concerned individuals from the Public Health, Environmental Protection, Affordable Housing, and Occupational Safety sectors.
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The Agency will continue to operate the established Lead Abatement Partnership Program ( LAP) using HOME funds. Under LAP, the Agency has offered assistance to low- income owner- occupants with a lead poisoned child ( above 20 μg/ dL) for over six years. On average, about 6 cases are handled per year.
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The Agency will continue to offer a new option under the LAP program. Using Housing Trust Fund funding set- aside through the Urgent Repair Program under the “ Displacement Prevention Demonstration”, the Agency will offer up to $ 5,000 per unit to LAP referrals whose situation may be more appropriately handled through DENR’s Preventative Maintenance Program. 2006 Consolidated Annual Action Plan - Amended
March 31, 2006 24
Funds are provided as grants to the homeowners to pay for cleanup and stabilization activities as prescribed by DENR’s regional lead specialists.
􀂃
The Agency will continue to count households with an elevated blood lead level ( greater than 10μg/ dL) as an eligible special needs household under the regular Urgent Repair Program ( URP). All households that are URP beneficiaries must be special needs households. Local health officials can refer such cases to local URP recipient organizations for assistance with Preventative Maintenance Program activities.
Office of Economic Opportunity
􀂃
Lead safe weatherization training will be provided to sub- recipient staff and subcontractors of the N. C. Weatherization Assistance Program to ensure the proper handling of situations involving lead hazards in dwellings receiving services.
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March 31, 2006 25
Descriptions of Programs
Below is a list of housing- related programs and services administered by the AIDS Care Unit; the Department of Commerce, Division of Community Assistance; the North Carolina Housing Finance Agency; and the Office of Economic Opportunity. For additional information on each Agency’s programs, contact the agency directly using the information given.
AIDS Care Unit
HIV/ STD Prevention and Care Branch
North Carolina Department of Health and Human Services
1902 Mail Service Center, Raleigh, North Carolina 27699- 1902
Phone 919.715.0136
www. schs. state. nc. us/ epi/ hiv
􀂃
Housing Opportunities for Persons with AIDS ( HOPWA)
This program, funded by the U. S. Department of Housing and Urban Development, provides funds to states and cities with the largest number of cases of HIV/ AIDS. The AIDS Care Unit administers the state entitlement grant for HOPWA, which provides services to 92 of the 100 counties in NC. Other entitlement communities include the Raleigh EMSA ( which includes Wake, Franklin and Johnston counties) and the Charlotte EMSA ( which includes Cabarrus, Gaston, Mecklenburg, Anson, York and Union counties). Funds are distributed to HIV Care Consortia, nonprofit housing and service organizations, local public housing authorities, and adult day/ family care home providers. The state HOPWA program funds the following eligible activities: tenant- based rental assistance; supportive services; operating costs ( dedicated housing facility); resource identification; housing information and short- term rent, mortgage and utility assistance.
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Ryan White HIV Care Program
This program provides funding to eight HIV Care Consortia ( to plan, develop, and assure the delivery of essential outpatient health and support services for persons with HIV) and sixteen Primary Medical/ Dental agencies ( to provide primary medical and/ or dental care to people living with HIV/ AIDS). In addition, these program funds, in conjunction with state dollars, an AIDS Drug Assistance Program ( ADAP) which provides life- sustaining medications to low- income North Carolinians diagnosed with HIV infection. Furthermore, the Ryan White HIV Care Program provides funds to the Minority AIDS Initiative ( MAI). This initiative is designed to re- connect minorities who are living with HIV/ AIDS and defined as “ lost to care” for less than 12 months to appropriate medical care and services consistent with established standards of care, including case management.
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Community Alternatives Program for Persons with AIDS ( CAP/ AIDS)
This program prevents the institutionalization of persons living with AIDS through the provision of home- and community- based services, which cost- effectively address client care needs while allowing the participants to remain in home and community settings.
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HIV Case Management Program ( HIV/ CMS)
This program assists eligible individuals living with HIV/ AIDS to prevent or alleviate social crises, which may threaten the quality of life. HIV/ CMS is a client- focused strategy for coordinating care that assesses a client’s need for specific health, psychological, and social services and facilitating access to services that will address those needs.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 26
Division of Community Assistance
Department of Commerce
4313 Mail Service Center
Raleigh, North Carolina 27699- 4313
Phone 919.733.2850
www. ncdca. org
Small Cities Community Development Block Grant Program:
􀂃
Community Revitalization Program ( CR)
This program provides funds to local governments to improve or develop residential areas for low- to- moderate income households in two subcategories: Concentrated Needs ( CN) and Revitalization Strategies ( RS). Grants for Concentrated Needs are primarily used for rehabilitation, water and sewer installation, streets, and drainage improvements, though other eligible activities are also allowed. Applications are accepted on a two- year funding cycle and all eligible applicants are rated and ranked through a competitive process. Awards of up to $ 700,000 are made on an annual basis from the ranked list of CN applicants. In 2006, projects will be awarded based on the highest rated remaining unfunded applications that were submitted in 2005. A system of regional allocation for distribution of funds in the CN category was implemented in 2005, and will be in place for the 2006 distribution. This regional allocation system will better ensure a level playing field for all applicants, regardless of location in the state, and allows for a greater diversity of activities.
The RS program is designed to provide grants to local governments to address multiple needs in a given community. Funds can be used for any CDBG- eligible activity as long as it is consistent with the overall strategy to help alleviate poverty in the designated area. Nine of the original ten communities that were chosen to receive RS funding in 2002 and have met their responsibilities for completion of activities in the first four years of the program will continue to receive funding through this program in 2006. One community’s program was a four- year project and will not receive funds in 2006. Eligible applicants were Tier 1 and Tier 2 Counties and nonentitlement municipal governments with a designated State Development Zone. The guidelines and application for the next round of RS grants is scheduled to be released in January 2006, with an application deadline of May 2006, and awards made in late summer 2006, subject to availability of 2006 funds. The projects in this second round of RS funding will be eligible to receive funds from 2006- 2011.
􀂃
Housing Development Program ( HD)
This program provides grants to local governments to support affordable housing projects. These projects create additional units of affordable housing through single- family developments or multifamily units, for low- and moderate- income households. Eligible uses of CDBG funds include installation of public infrastructure ( water, sewer streets, sidewalks, and drainage, on a case- by- case basis), the removal of hazardous material, acquisition of vacant land or vacant buildings by an eligible nonprofit, and certain rehabilitation activities ( on a case- by- case basis). Priority will go to rental housing in Tier 1 & Tier 2 counties, North Carolina Small- Cities- eligible State Development Zones, and 21st Century Communities. Grant amounts are $ 18,000 per unit for single- family projects and $ 6,000 per unit for multifamily projects, and are not to exceed a total of $ 250,000. A sub- category within Housing Development is DCA’s Individual Development Account ( IDA) program. Through this program participants are introduced into the mainstream financial system,
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 27
provided credit and housing counseling and homebuyer and financial literacy, and receive match money for down payment assistance upon successful completion of the program.
􀂃
Scattered Site Housing Program ( SSH)
This program provides funds to local governments to address the most critical needs of families. Grants are made on a noncompetitive basis with $ 400,000 available to each county every three years. Funds are targeted to improve housing conditions of very- low income families. As lead agents, counties will receive funds by submitting a detailed plan, describing how funds will be distributed to meet housing priorities. These plans will involve all interested municipalities in the county. In 2006, the following counties are scheduled to receive Scattered Site Housing grants: Anson, Avery, Brunswick, Caldwell, Carteret, Catawba, Craven, Davidson, Duplin, Edgecombe, Forsyth, Graham, Granville, Greene, Hoke, Iredell, Jackson, Lenoir, Lincoln, McDowell, Moore, Pamlico, Perquimans, Pitt, Randolph, Rutherford, Stanly, Tyrrell, Union, Watauga, Wilson and Yadkin. In addition, the towns of Holly Springs and Linden are slated to receive SSH funds due to their eligibility to receive Small Cities State CDBG funds though each are located in an urban county ( Wake and Cumberland, respectively). Holly Springs is eligible for $ 100,000 of SSH funds in 2006 and Linden is eligible for $ 50,000.
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Infrastructure Hook- Up Program ( IF Hook- Up)
This program provides funds to local governments to address access to proper water and wastewater facilities among its low- to- moderate income residents. Local governments may apply for up to $ 75,000 to hook households to water and wastewater facilities in low- to- moderate income areas where need is great due to environmental health concerns, but residents cannot afford the tap fees to access the lines. These grants are issued on a first- come, first- serve, non- competitive basis. Counties or municipalities must submit a detailed plan mapping the area and households to be targeted, show that the lines homes are to be hooked to are appropriate, that the system can absorb the additional demand as well as demonstrate the financial feasibility of the utility.
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North Carolina Housing Finance Agency
P. O. Box 28066, Raleigh, North Carolina 27611- 8066
Phone 919.877.5700
www. nchfa. com
􀂃
Duke Power Home Energy Loan Program
This program provides funds to Duke Power customers whose incomes are below 80% of area median. Assistance is channeled through local governments, nonprofit organizations, and regional councils. Duke HELP can be only used for energy- efficient measures to owner- occupied housing and must be matched with other funds to comprehensively rehabilitate all units assisted.
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Home Protection Pilot Program
This program assists homeowners in select counties who are at risk of foreclosure due to job loss. It provides zero- interest loans of up to $ 20,000 over 18 months with a maximum repayment term of 15 yto such homeowners with the expected ability to repay the loan in the future. The program also provides funding for housing counseorganizations to assist those homeowners.
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Housing Credit Programs ( Federal and State)
These programs encourage owners to produce rental housing for households below 60% of the area median income by allowing a 15- year federal tax credit and a refundable state tax credit. Developments remain affordable for 30 years due to an extended use agreement. For both these programs, the amount of credit a project receives is a percentage of its eligible basis. The North Carolina Tax Reform Allocation Committee sets policy for the Federal Tax Credit program. Tax credits are awarded to nonprofit and for- profit developers through a competitive funding cycle; the preliminary application deadline is in January, and the full application is usually due in May.
􀂃
Individual Development Account Loan Pool
This program provides up to $ 2,000 to match the savings of low- income households working toward homeownership. Recipients are also are eligible for $ 20,000 gap financing from NCHFA. The program is operated through selected Housing Counseling Agencies.
􀂃
Key Program
This program is a partnership between NCHFA and the NC Department of Health and Human Services. It provides rental subsidies to low- income disabled tenants in properties that received federal Low Income Housing Tax Credits in 2004 or later. Eligible recipients must have income from a federal disability program and be referred by a designated Lead Agency. Lead Agencies are local service providers who have committed to coordinating services for recipients and have entered into a Memorandum of Understanding with a property owner.
􀂃
Lead Abatement Partnership Program ( LAPP)
This program assists low- income homeowners with lead- poisoned children. In cooperation with the North Carolina Departments of Environmental and Natural Resources and Health and Human Services, the North Carolina Housing Finance Agency provides technical assistance and financial assistance in the form of small grants or larger, interest- free, deferred payment loans to homeowners.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 29
􀂃
Mortgage Credit Certificate ( MCC)
This program assists homebuyers with the purchase of new or existing homes by granting them a tax credit on their federal income taxes; it reduces the federal income tax liability for the homeowners. This leaves them with more disposable income; therefore, they are better able to qualify for a market- rate mortgage. Credits are awarded to individual households through participating lenders and are restricted to low- and moderate- income first- time homebuyers who are determined ineligible for the Agency’s low interest rate mortgage loan.
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Mortgage Revenue Bond Program and Down Payment Assistance Program
This program offers mortgages through participating lenders to first- time homebuyers with low to moderate incomes at an interest rate below the market rate. Buyers may purchase new or existing homes and may qualify also for HOME- funded second- mortgage downpayment assistance. The DAP program will utilize ADDI funding in addition to regular HOME funding. The MRB program is funded by the sale of tax- exempt bonds.
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New Homes Loan Pool Program
This program provides interest- free, deferred second- mortgage loans of up to $ 20,000 for the purchase of newly constructed homes. Loans are provided to the low- income homebuyers referred by nonprofit organizations, units of local government, and regional organizations. Targeting homebuyers whose incomes are less than 80% of area median income on a first- come, first- served basis, this program has an open cycle for accepting membership and project applications. Grant funding is also available to participant organizations to bring for- sale units to a higher level of energy efficiency.
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North Carolina Elderly Housing Rights and Consumer Protection Program
This program provides information for consumers on housing rights and consumer protection issues such as homeowner rights and tenant/ landlord fair housing rights. Program staff develops materials and trains advocates and service providers. The Agency also works with the Office of the Attorney General to provide training and certify high cost loan counselors, as requried by state statute.
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Rental Production Program
This program provides loans of up to $ 1 million per development ( this may be exceeded in some cases) for the production of rental housing, primarily targeting households below 50% of area median income.
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Rental Preservation Loan Program
This program provides below- market- rate loans to rehabilitate affordable apartments. It targets the rental developments that would benefit from capital improvements but do not qualify for the Agency’s other programs, which tend to be smaller properties in non- metropolitan areas. Eligible uses of the funds include the replacement of outdated major systems ( such as HVAC), and meeting federal accessibility requirements. Agency construction standards will apply.
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Reverse Mortgages for Elderly Homeowners
This program gives older homeowners a vehicle for converting equity in their homes to cash, by providing reverse mortgages insured by the Federal Home Administration ( FHA). Borrowers must be at least 62 years old and must participate in a mortgage counseling program offered by an
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March 31, 2006 30
approved reverse mortgage counselor. In North Carolina, the North Carolina Housing Finance Agency provides training and certifies reverse mortgage counselors, as required by state statute.
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Rural Opportunity Mortgage ( ROM) Program
This program allows the United States Department of Agriculture- Rural Development to originate and close Agency 30- year below- market, fixed rate mortgages in conjunction with the USDA’s Section 502 direct loans to help very- low- and low- income homebuyers.
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Self- Help Loan Pool Program
This program provides financing up to $ 15,000 per unit to self- help housing organizations. Mortgage loans at zero percent interest are provided to homebuyers who are usually below 50% of area median income. Grant funding is also available to participant organizations to bring the units they develop to a higher level of energy efficiency.
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Single- Family Rehabilitation Program
This program provides deferred, forgivable loans to home owners through regional agencies, units of local government, and nonprofit organizations. The purpose is to rehabilitate moderately deteriorated owner- occupied homes, primarily targeting elderly and disabled homeowners below 80% of area median income. All units are brought up to stringent energy and construction standards.
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Supportive Housing Development Program
This program provides loans of up to $ 500,000 per project for the development of emergency, transitional or permanent supportive housing. Assistance is targeted primarily to households below 30% of area median income with special needs. Eligible populations include homeless individuals and families, mentally ill, developmentally disabled, persons with addiction disorders, survivors of domestic violence, and persons with HIV/ AIDS. Eligible applicants are nonprofits and units of local government.
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Supportive Predevelopment Loan Program
This program provides predevelopment loans to nonprofit developers who are building supportive housing for low- income households with special needs. Funds may be used for architectural services, engineering work, and environmental reviews. Funding is open but limited by availability.
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Urgent Repair Program
This program provides grants to homeowners through nonprofit organizations, units of local government, and regional councils, to correct housing conditions that pose an imminent threat to life or safety of the household or cause an imminent threat to displacement. Assistance is targeted to homeowners with special needs earning below 30% of area median income. A Displacement Prevention Demonstration fund allows the Independent Living Program and local health departments to assist households facing displacement due to mobility limitations and lead paint poisoning.
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Office of Economic Opportunity
North Carolina Department of Health and Human Services
2013 Mail Service Center, Raleigh, North Carolina 27699- 2013
Phone 919.715.5850
www. dhhs. state. nc. us/ oeo/
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Community Services Block Grant Program ( CSBG)
This program is funded by the U. S. Department of Health and Human Services. It awards funds to community action agencies and limited purpose agencies, on a formula basis, for anti- poverty activities including eviction and foreclosure prevention.
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Emergency Shelter Grants Program ( ESG)
This program provides grants for emergency shelter operations, essential services, and homeless prevention activities. It is funded by the U. S. Department of Housing and Urban Development and administered by the Office of Economic Opportunity. Funds are awarded to nonprofit organizations and/ or units of local government on a pro- rata basis, and each grant recipient must provide a one- to- one match of funds.
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Weatherization Assistance Program ( WAP)
This program provides funds to local community action agencies and other private, nonprofit agencies to install energy conservation measures in homes. This program serves primarily elderly and disabled households with incomes below 150% of the poverty level. This program is funded by the U. S. Department of Energy and the North Carolina Department of Health and Human Services – Division of Social Service Low Income Home Energy Assistance Program Block Grant.
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Heating Air Repair Replacement Program ( HARRP)
This program provides funds to local community action agencies to replace or repair inefficient or unsafe heating system for low- income elderly individuals, disabled individuals, and low- income families with small children whose incomes do not exceed 150% of the poverty level. Eligible elderly and disabled homeowners can have cooling system repaired or replaced. The program is funded by the North Carolina Department of Health and Human Services – Division of Social Services through the Low Income Home Energy Assistance Program Block Grant.
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Community Development Block Grant ( CDBG)
2006 Program Report
The Department of Commerce oversees the comprehensive economic development strategies that are carried out by state governmental agencies and its allies. Much of the Community Development Block Grant ( CDBG) program is oriented toward two goals contained in the department’s strategic plan: 1) Building Stronger Communities and 2) Creating Jobs through Sustainable Economic Development. This plan is organized to fulfill the department’s mission statement: “ To improve the economic well- being and quality of life of all North Carolinians”.
For 2006, the first year of the five- year strategy of the NC Consolidated Plan for 2006- 2010, an over- arching theme of the state’s investment of federal resources focuses on stimulating development of distressed rural communities and portions of urban areas that have not enjoyed the positive growth that much of the state has experienced.
State Community Development Priorities For 2006
Major priorities for 2006 include the following:
Targeted Investments
Targeting state investments on specific high- impact outcomes in distressed rural areas and high priority small cities, the Department of Commerce will continue to focus on providing flexible funding to Tier 1 and Tier 2 Counties and municipal governments with designated State Development Zones ( SDZ). In addition, the 21st Century Communities initiative will provide flexible targeted funds to local governments in four additional counties that were selected based on their economic distress to make them more competitive in the global economy. The designees for the third round of this initiative that were announced in the summer of 2005 and will be eligible for priority status in 2006 are Burke, Hyde, Montgomery, and Sampson counties. The Department will also target funds to address CDBG- eligible priorities coming out of EDA- funded Comprehensive Economic Development Strategies ( CEDS) in four regions of the state that have experienced severe economic downturns and job losses.
Investment Plan
In 2006, North Carolina expects to receive approximately $ 45,000,000 in CDBG funds. In addition, other funds may become available as a result of additional HUD allocations, recapture, reversion, or carry- over of prior year funds and program income. The state may make grants to non- entitlement governments statewide. Eligible applicants include all counties, except for Wake and Cumberland ( and their municipalities, though Holly Springs in Wake and Linden in Cumberland are eligible for CDBG funds from DCA), and municipalities in the other 98 North Carolina counties, except the twenty- three entitlement cities that receive funds directly from the US Department of Housing and Urban Development ( HUD). Applicants must meet thresholds and requirements for expenditure of funds from prior CDBG projects.
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Investment Plan – 2006 Distribution
Community Revitalization
$ 13,559,635
Concentrated Needs
($ 10,059,635)
Revitalization Strategies
($ 3,500,000)
Scattered Site
$ 13,257,824
Infrastructure
$ 5,161,410
General Improvements Wastewater Connections
($ 4,161,410)
($ 1,000,000)
Housing Development
$ 2,007,701
Rental and Homeowner Development & Tax Credit Projects
( 1,807,701)
Individual Development Account
($ 200,000)
Economic Development
$ 8,748,152
Urgent Needs/ Contingencies
$ 1,006,037
Projected Program Income*
$ 300,000*
Administration
$ 1,003,933
Technical Assistance
$ 451,967
2006 HUD Grant to State
$ 45,196,659
Note: The original plan that this budget is based upon was adopted by the North Carolina General Assembly in the 2005- 06 budget as part of SB 622.
* The Capacity Building category will be funded through projected program income receipts in 2006. These will be available to the Capacity Building category as available.
Method Of Distributing Funds
In 2006, projects will be awarded from several funding sources:
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New 2006 funds according to the investment plan above.
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Funds from the 2005 or earlier disbursements recaptured or de- obligated from prior Community Revitalization, Infrastructure, Scattered Site, demonstration category grants, funds recaptured from Economic Development projects awarded prior to May 1992, and funds not otherwise distributed from the above categories by June 30, 2006 may be awarded to qualifying applications in either Concentrated Needs, Infrastructure, Urgent Needs, the Rural Center Partnership, or the proposed Microenterprise IDA demonstration as of July 1, 2006.
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Any 2006 Scattered Site funds not awarded by October 1, 2006 may be awarded to qualifying applications in either Concentrated Needs, Infrastructure, Urgent Needs, , the Rural Center Partnership, the proposed Microenterprise IDA demonstration, or as supplemental Scattered Site Housing funds to previous qualified applicants ( see p. 30 for details).
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Any recaptured or de- obligated Housing Development or Individual Development Account funds from previous disbursements, and any 2006 Housing Development funds not awarded by December 31, 2006, will be available for Individual Development Account grants, if needed. If not, funds may be awarded to qualifying applications in Concentrated Needs, Infrastructure, or Urgent Needs.
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Any non- revolving loan Economic Development funds from previous disbursements not awarded by October 1, 2005 and any 2006 Economic Development funds not awarded by
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March 31, 2006 34
October 1, 2006 may be distributed to projects in the Urban Redevelopment program, if needed. Any 2006 non- revolving loan Economic Development or Urban Redevelopment funds not awarded by December 31, 2006 may be used to provide funds for economic development activities through non- profit agencies in partnership with local governments. If any funds remain at the conclusion of this cycle, funds may be awarded to qualifying applications in either Concentrated Needs or Infrastructure.
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Program income received in 2006 will be available for the Capacity Building category on an as available basis. Any unused 2006 program income not distributed as of December 31, 2006 may be awarded to qualifying applications in either Concentrated Needs or Infrastructure.
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The partnership with the North Carolina Rural Economic Development Center for Economic Development projects, as directed by the North Carolina General Assembly in SB 622, will be funded from de- obligated funds.
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Funds not awarded in Urgent Needs/ Contingency may be awarded to qualifying applications in either Concentrated Needs or Infrastructure.
Program Categories for 2006
Community Revitalization ( CR) grants are administered by DCA to improve or develop residential areas for low and moderate income households in two subcategories: Concentrated Needs with maximum grants of $ 700,000 and Revitalization Strategies with a $ 350,000 maximum grant per year for up to 5 years according to an approved strategic plan.
Awards for Concentrated Needs ( CN) in 2006 will be made to the highest ranking communities among those applications that were submitted in Fall 2004 in a competitive process but not funded in 2005. As part of H. B. 1414, the General Assembly in 2004 approved a regional distribution plan for the Concentrated Needs category to be applied to the 2005 program year and all subsequent years. This regional distribution plan divides the state into four regions and assigns each region a percentage of the funds dedicated to the Concentrated Needs category annually. Funds not allocated in one region may be reallocated to another if there are an insufficient number of qualified applicants at the end of the program year. Concentrated Needs applicants may request up to 15% for local options to undertake any of the following activities in the applicant’s jurisdiction:
•
Scattered Site Housing Rehabilitation
•
Emergency Repairs
•
Installation of on- site water or wastewater system
The Revitalization Strategies ( RS) program is designed to provide grants to local governments to address multiple needs in high poverty neighborhoods. Grants in this category will continue to be made in 2006 to nine of the original ten grantees awarded in 2002 ( one program was a four- year program slated to end in 2005) to provide long- term funding for their multi- year revitalization. In 2006, technical assistance will be provided those grantees. Eligible applicants were Tier 1 and Tier 2 Counties and non- entitlement municipal governments with a designated State Development Zone.
In January 2006 guidelines and the application for the next round of RS grantees may be released with a Request for Proposals. The applications will be rated in the summer of 2006, and small planning grants will be issued, subject to funding availability, using 2006 RS funds to the newly awarded applicants in the late summer or fall of 2006. Full funding for these applicants will be committed in the 2007 program year, also subject to funding availability.
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Scattered Site Housing ( SSH) grants will be made to local county governments on a rotating basis to address housing needs of very low income families throughout the county. County governments can receive $ 400,000 every 3 years with funds targeted to very low- income homeowners for rehabilitation or relocation purposes. Counties submit a detailed plan that includes all interested municipalities within the county describing how funds will be distributed to meet housing needs. Scattered Site Housing applicants may request that up to ten percent of funds be set aside for local option to undertake emergency repairs or repair/ replace on- site well and/ or septic systems.
Those counties that accomplish their goals and exhaust funds within two years are eligible to receive up to an additional $ 100,000 to continue activities allowed in the SSH category.
In 2006, the following counties are scheduled to receive Scattered Site Housing grants: Anson, Avery, Brunswick, Caldwell, Carteret, Catawba, Craven, Davidson, Duplin, Edgecombe, Forsyth, Graham, Granville, Greene, Hoke, Iredell, Jackson, Lenoir, Lincoln, McDowell, Moore, Pamlico, Perquimans, Pitt, Randolph, Rutherford, Stanly, Tyrrell, Union, Watauga, Wilson and Yadkin. In addition, the towns of Holly Springs and Linden are slated to receive SSH funds due to their eligibility to receive Small Cities State CDBG funds though each are located in an urban county ( Wake and Cumberland, respectively). Holly Springs is eligible for $ 100,000 of SSH funds in 2006 and Linden is eligible for $ 50,000.
Infrastructure ( IF) An estimated total of $ 5.14 million will be available in the Infrastructure category for 2006. Eligible local governments may obtain grants of up to $ 750,000 to provide new infrastructure ( public water and/ or public sewer) to existing residential neighborhoods to correct problems that pose a severe health or environmental risk. In an effort to address needs in 21st Centuries Communities, half of the total IF funds will be available to local governments in the 21st Century Communities on an open- ended basis. The other half of the funds will be available to all eligible local governments. DCA plans to change its method of application funds for the IF category for 2006. That method has yet to be determined.
For the 2006 Infrastructure category, DCA will give priority for funding to projects as listed below:
21st Century Communities Pool
Priority will be given first to projects that propose a regional solution to a problem and are consistent with a county plan, and second to water projects that propose to alleviate the most serious needs.
Regular Pool
Funding priorities will include measures to distribute grants to highly qualified eligible applicants in each region, projects that propose a regional solution to the problem, and water projects that propose to alleviate the most serious needs. Local governments will be required to display a high state of readiness in the application for IF funds. Projects should be ready to begin as soon as possible after receiving CDBG funds.
Water/ Wastewater Connection Program
In 2006, grants will continue to be made available to eligible local governments applying on a first- come, first- serve basis for the Water/ Wastewater Connection Program. This program constitutes $ 1 million of the total infrastructure allotment. Eligible activities include costs and fees associated with connecting lower income families to existing water or sewer lines.
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Economic Development ( ED) This category will continue the policy adopted by the North Carolina General Assembly in the William S. Lee Quality Jobs and Business Expansion Act of 1996, as amended, of providing higher levels of funding to the most economically distressed areas of the state. The following considerations will be included for job creation and retention projects during the 2006 program year: 60% of the jobs created or retained in a project must benefit persons qualifying as prior low and moderate income ( LMI). Funding for Economic Development projects is based on the number of jobs to be created and the level of distress in the community applying for the funds. Areas with higher distress rankings, based on the North Carolina Tier rating system, are eligible for more funds per job created. Additional CDBG funding per job is available for projects proposed to be located in a State Development Zone or a 21st Century Communities as designated by the Secretary of Commerce.
CDBG funds are granted to local governments for various types of infrastructure improvements to assist business expansion or retention. A local funding match of at least one dollar for every three CDBG dollars is required except for designated Tier 1 counties and 21st Century Counties. In a secondary priority to infrastructure projects and at the discretion of the Secretary of Commerce, direct financial assistance to private companies is available as loans to be negotiated by the local government applicant and a participating North Carolina commercial bank at a level not to exceed 50% of the bank loan. Repayment of the loan by the private company becomes program income to the State and is deposited into a CDBG economic development revolving loan fund ( RLF). Funding from the RLF is available only as loans.
For program year 2006, loans for industrial shell buildings are available from the RLF based on the projected number of jobs to be created and the level of distress in the community. These loans will be at a 2% interest rate with a maximum term of 5 years. A dollar for dollar match is required by the local government applicant for a industrial shell building. Also, up to $ 500,000 will be set aside in the RLF for counties in Tiers 1- 3 as loans to assist with the costs associated with certifying industrial sites. These grants are repaid after the certified site is sold or within five years of award.
Entrepreneurial Incubation Grants
In partnership with the Rural Economic Development Center, the Department will award up to $ 2,250,000 in demonstration grants in very distressed rural areas to address critical infrastructure and entrepreneurial needs and to provide small business assistance. Grant recipients will be selected by a competitive process designed jointly by the Rural Center and the Department.
Urban Redevelopment Grants
Funded from 2005 Economic Development funds that have not been awarded by October 1, 2005, as well as 2006 funds not awarded as of October 1, 2006, Urban Redevelopment Grants will encourage increased economic activity in areas that have been designated as “ Redevelopment Areas” or “ Rehabilitation, Conservation, and Reconditioning Areas” under North Carolina Redevelopment Law. CDBG funds will be provided to municipalities to remove obstacles to private investment in the area by correcting code or safety violations or for historic preservation of deteriorated buildings, by improving infrastructure, by acquiring and clearing blighted property, and by addressing other conditions that contribute to the deterioration or under- investment in the area. Eligible projects must include commitments for the private investment that will be generated by the activities to be carried out with CDBG funds.
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Microenterprise IDA Grants
As part of its partnership with the North Carolina Rural Economic Development Center, DCA will investigate the feasibility of using CDBG funds to help small businesses through an Individual Development Account program demonstration. Through this program, match funds would be provided for new or expanding businesses to purchase machinery, equipment, or other necessary capital. The maximum proposed grant amount is $ 50,000 per project. The Microenterprise IDA program would be funded in 2006 by de- obligated funds from previous years.
Housing Development ( HD) grants administered by DCA will focus on the creation of multi- unit rental developments and provide support for homeownership activities for low and moderate- income families. Local governments in Tier 1 and Tier 2 Counties, municipalities that have designated SDZs, and 21st Century communities will receive preference for HD funds. The HD allocation will be divided into two funding pools: Homeownership and Rental Housing.
Rental Housing ($ 1,100,000)
Multi- unit Development
Funds will be provided for rental developments. Eligible uses of CDBG funds include installation of public infrastructure ( water and sewer lines are automatically eligible for funding; streets, sidewalks and drainage may be funded on a case by case basis), the removal of hazardous material, acquisition of vacant land ( by an eligible non- profit) or vacant historic buildings ( by an eligible non- profit or for- profit developer), and certain rehabilitation activities ( on a case- by- case basis). The maximum grant is $ 250,000 with a $ 6,000 per unit maximum.
Homeownership ($ 900,000)
Single- family Housing
Funds will be available for assisting single- family housing developments up to $ 250,000. Eligible uses of CDBG funds include installation of public infrastructure ( water, sewer, streets, sidewalks and drainage), the removal of hazardous material, or vacant land acquisition by an eligible non- profit. There is an $ 18,000 per unit assistance maximum for single- family projects.
Individual Development Account ( IDA)
These funds provide match for down payment assistance or closing costs to qualified first- time low and moderate- income homebuyers. The maximum funding is $ 70,000 per project. IDAs are funded in 2006 by a $ 200,000 set aside from the HD line item and from de- obligated HD funds from previous years.
Urgent Needs ( UN) grants are to be used to help meet community development needs that ( 1) have arisen during the preceding 18- month period, ( 2) pose an imminent threat to the health or safety of the community, ( 3) the applicant does not have sufficient local resources, ( 4) where other financial resources are not available to meet such needs. Due diligence will be conducted to determine whether projects meet the above 4- part test. Urgent Needs grants will be available on an as needed basis, or until funds are exhausted. Projects will generally be funded on first request basis. If more requests are made for funding than is currently available, the Secretary of Commerce may choose to fund the project that resolves the more serious situation, regardless of the order of submission of requests.
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Contingency grants may fund eligible projects submitted in any category.
Capacity Building ( CB) grants of up to $ 75,000 will be made available to local governments to assist non- profit organizations develop appropriate and competitive CDBG projects and gain functional capacity in a new and different role. The total amount of funds available for this program will not exceed $ 600,000. Funds are available on a first- come- first- serve basis with priority going to local governments from 21st Century Communities, Tier 1/ Tier 2 Counties, and designated State Development Zones. A Capacity Building grant is expected to result in a future application in one of the CDBG categories. In 2006, funds for Capacity Building grants will be made available from program income.
The NC Development Loan Fund ( NCDLF), also known as the Section 108 Loan Guarantee Program, pledges future CDBG allocations as security for loans in accordance with the HUD Section 108 Loan Guarantee Program Final Rule published November 6, 1991. Applications may be submitted at any time during the year, as long as funds are available from HUD.
The maximum loan is $ 5 million. The state may enter into loan guarantee agreements in support of projects sponsored by individual local governments with a minimum loan of $ 750,000 or in support of loan pools of two or more projects supported by local governments with a minimum of $ 250,000. Projects must meet minimum criteria with respect to equity, collateral and underwriting standards.
The Department of Commerce is currently evaluating the Section 108 program to see if changes should be recommended. Recommendations, if any are made, for changes to the program will be released in 2006. This program may be activated with one or more regional loan pools to meet demand for funds.
The Community Development Plan Pilot Program may provide funds of up to $ 20,000 for local governments to develop comprehensive community development plans. This program would be run as a demonstration in Spring 2006. These plans would be applicable to all CDBG grants and would help direct local governments in their community development efforts.
Technical Assistance ( TA) funds will concentrate on developing the professional skills and capabilities of local community development grant administrators. In consultation with the North Carolina League of Municipalities, the North Carolina Association of County Commissioners, and the North Carolina Community Development Association, the Commerce Department implemented a professional certificate program for grant administrators in 2003. Participants that pass an exam will receive a certificate of completion. Possession of this professional certificate would assure local governments that the people they engage to administer community development grants meet and maintain high professional standards of knowledge, ethics and competency. DCA is working with the University of North Carolina at Chapel Hill’s School of Government to determine the demand for a professional development academy in 2006; one may be offered for local government staff and their contract administrators if there is sufficient demand to warrant the workshop.
Monitoring Standards
The Department of Commerce must insure that grantees under the CDBG Program carry out their projects in accordance with Federal and State statutory and regulatory requirements set forth in the grant contract executed between the State and the grantee. The Department of Commerce will provide maximum feasible delegation of responsibility and authority to grantees under the CDBG
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program. The Department of Commerce’s monitoring of CDBG grantees will be conducted in a positive, assistance- oriented manner. Whenever possible, deficiencies will be rectified through constructive discussion, negotiation and assistance, and in a manner which preserves local discretion.
The Department of Commerce will conduct two basic types of monitoring: off- site, or “ desk” monitoring, and onsite monitoring. Desk monitoring is an ongoing process in which the project administrator responsible for overseeing the grantee’s project uses all available information to review the grantee’s performance in carrying out the approved project. Onsite monitoring is a structured review conducted by the DCA grant representative at the location where the project activities are being carried out and/ or where project records are being maintained. Checklists are utilized to ensure that all issues are addressed. Documentation is gathered in order to support conclusions in response to the grantee. The number of times a project is monitored varies upon the issues that arise during the desk and onsite monitoring.
In accordance with CPD Notice 03- 09, the Consolidated Plan partners, represented by the Division of Community Assistance as the lead agency, have been working towards a method of quantifiable performance measures to assess the accomplishments of all four Consolidated Plan programs. The Council of State Community Development Agencies ( COSCDA) has been working with the federal Office of Budget and Management ( OMB), the United States Department of Housing and Urban Development ( HUD), and other stakeholders to develop ideal performance measures that are specific and measurable while still flexible enough to be applied universally across the country. DCA staff has served on an internal working group within COSCDA to provide feedback during the formulation process for these performance measures. Furthermore, DCA staff members have, on behalf of the Consolidated Plan partners, attended HUD- sponsored workshops in the summer of 2005 on the performance measures framework. DCA staff plans to continue participating in this dialogue with HUD and working to meet performance measure requirements during the 2006 program year. It is the intent and plan on all four North Carolina state Consolidated Plan partners to utilize the uniform performance measures once they are adopted and released by HUD and OMB.
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Emergency Shelter Grants ( ESG) Program
The purpose of the ESG Program is to improve the quality of existing emergency shelters for the homeless, to assist with the cost of operating such shelters, to provide essential social services to the homeless and to conduct homelessness prevention activities. North Carolina’s ESG Program is administered by the Office of Economic Opportunity ( OEO), NC Department of Health and Human Services ( DHHS).
Program Resources
It is anticipated that the State of North Carolina will receive a total ESG allocation of $ 2.4 million for the period of January 1, 2006 – December 31, 2006. The State of North Carolina will distribute these funds to eligible nonprofit organizations and units of local government during its 2006 fiscal year beginning July 1, 2006 and ending June 30, 2007. Based on the performance of the State’s FY 2005 ESG contractors, it is anticipated that 92% of the State’s FY 2006 ESG funds will be used to pay operation costs of funded homeless facilities, 6% will be used by contractors to deliver essential services to clients and 2% will be used to conduct homeless prevention activities. North Carolina will utilize the 5% administrative set- aside allowed under program regulations to pay for a staff person responsible for coordinating and monitoring ESG Program activities statewide and to cover other non- personnel costs incurred such as travel, printing, office space, equipment, and supplies.
No program income will be earned through the operation of the ESG Program. As required by federal ESG program regulations, any organization or unit of local government receiving an award under the ESG Program must provide an equal amount of funds from one or more of the sources listed below.
1)
the value of any donated material or building ( using the current retail or fair market value of the donated item)
2)
the value of any lease on a building ( if owned); any salary paid to staff in carrying out the program
3)
time and services contributed by volunteers through their participation in organization programs for homeless people valued at $ 5.00 per hour. Volunteer services of a professional nature ( i. e., health professionals, etc.) may be claimed at a higher rate as long as documentation is provided that the rate claimed is comparable to normal compensation for that profession.
4)
funds received for the period of grant funding from private foundations, charitable organizations, churches, local or state government programs or private individuals for support of the homeless facility or programs for the facility residents or clients.
Eligible Program Activities
Funds allocated to North Carolina by the U. S. Department of Housing and Urban Development ( HUD) are awarded to units of local governments and public or private nonprofit organizations. Funds are made available statewide.
Eligible costs under Operations include rent, utility costs, communications, equipment, contractual services, minor building maintenance and repair, supplies and materials, and administrative salaries and fringe benefits. Contractors may also include administrative salaries and fringe benefits as costs under Operations but must limit such costs to 10% of their total ESG award. Appropriate time 2006 Consolidated Annual Action Plan - Amended
March 31, 2006 41
records must be maintained for any employee whose salary and/ or fringe benefits are paid with ESG funds.
Eligible costs under Essential Services include housing referral, medical and psychological counseling, nutritional counseling, employment training and counseling, substance abuse treatment and counseling, child care assistance, client transportation and information and referral. Salaries and fringe benefits of personnel who deliver direct services to clients may also be included as an Essential Services expense. Costs charged to Essential Services must total no more than 30% of the contractor’s total ESG award. Appropriate time records must be maintained for any employee whose salary and/ or fringe benefits are paid with ESG funds. Written contracts must be approved in advance and maintained on file for services purchased by the applicant agency with ESG funds.
Homeless Prevention activities are also eligible for ESG funding. Costs of such activities may not total over 30% of the contractor’s total ESG award. Prevention activities eligible for funding include security deposits, first and last month render payments, payments to prevent eviction or foreclosure, utility deposits or delinquent utility payments. Contractors are required to maintain written documentation of the homelessness or impending homelessness of the persons who receive homeless prevention funds.
Based upon the number of unduplicated individuals served in SFY 2004 ( July 1, 2004 – June 30, 2005) by State ESG contractors, it is anticipated that over 45,000 homeless people in the state will be served with North Carolina ESG funds during the period of July 1, 2006 – June 30, 2007.
Ineligible Program Activities
The State’s ESG Program does not fund construction, renovation or rehabilitation of facilities for the homeless although these activities are allowed under federal program regulations. This decision was made due to two factors. First, the limited amount of ESG funding available combined with the high costs of construction, renovation and rehabilitation would mean that a very limited number of contractors could be assisted through the program. Second, North Carolina ESG contractors have consistently stressed the need for funding to assist with the costs of operating existing shelters, providing client services and conducting homeless prevention activities.
Distribution Methods
North Carolina’s process for distributing ESG funding is non- competitive. Pre- applications for funding will be distributed to previous ESG contractors ( 100+), county managers ( 100), community action agencies ( 43) and other interested agencies, organizations and individuals ( 30– 50) in January of 2005. Pre- applications are posted on the OEO website ( www. oeo. dhhs. state. nc. us).
Pre- applications are used to determine an applicant’s eligibility for ESG funding according to set criteria. An eligible applicant must:
•
document its process for verifying that clients served meet the HUD definition of “ homeless”
•
operate the emergency and/ or transitional shelter facility for which funding is requested for at least one year prior to the date of application;
•
operate the emergency and/ or transitional facility for which funds are requested for a minimum of six full months out of the year;
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 42
•
operate a safe and sanitary facility which:
- if a 24 hour or Night Only facility, has an average daily occupancy ( ADO) of at least six homeless persons per night; or
- if a Day Only facility, has an APSD ( average number of persons served daily) of at least 30 persons per day; and, provides one or more of the essential services defined by the U. S. Department of Housing and Urban Development.
•
have an established accounting system that provides for maintenance of ESG funds in accordance with OMB Circulars A- 110 and A- 122;
•
have a voluntary board of directors of at least five members;
•
have the ability to expend ESG funds budgeted for Operations and/ or Services within 365 days and ESG funds budgeted for Homeless Prevention within 180 days;
•
have acceptable resources to match the ESG funding received;
•
involve, to the maximum extent practicable, homeless persons in maintaining and operating facilities assisted under the ESG Program; and,
•
in the case of a private, nonprofit organization, have the endorsement of the unit of local government in the community in which the emergency or transitional shelter is located.
Program staff will review pre- applications in February of 2006. Those applicants determined eligible receive an application package in mid March of 2006. Applicants will be notified of the funding amount for which they may apply in the cover letter that accompanies their application package. Factors considered when determining the funding amount for each applicant include the type of facility( ies), which the applicant operates, the average daily occupancy of the applicant’s facility( ies), the total amount of funding available, and the total number of applicants approved for program funding. Application forms are posted on the OEO website ( www. oeo. dhhs. state. nc. us) for easy access by approved applicants.
A contractor training session will be held in April of 2006. During this session, applicant organizations will receive training in the completion of the program’s application package, financial reporting requirements and client data collection. Organizations approved to apply for ESG funding for the first time will be required to attend this session as a condition of final funding approval.
Completed ESG applications must be returned to OEO in May of 2006. Applications will be reviewed for completeness and additional information will be requested from applicants if needed. Once applications are approved and the agreement between the NC Department of Health and Human Services and the U. S. Department of Housing and Urban Development is in place, contracts are executed. The contract specifies the responsibilities of the contractor and the State, sets forth the activities to be performed utilizing ESG funding, includes an approved budget for such activities and documents the availability of matching funds. Contract execution will be completed no later than June 30, 2006. The State ESG Program year coincides with the State’s fiscal year of July 1 – June 30. Applicants may request reimbursement of their ESG expenses monthly by submitting Financial Status Reports to the Office of Economic Opportunity. Funding advances are not allowed.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 43
Program Evaluation and Monitoring
All FY 2006 ESG contractors will be subject to on- going monitoring throughout the term of the grant. The primary methods of monitoring will include:
•
Review of mid- year and end- of- year contractor performance reports
•
Review of contractor monthly financial status reports
•
Periodic on- site monitoring, including review of randomly- selected case files; and
•
On- going telephone contact with contractor staff
All ESG contractors will be required to submit mid- year and end- of- year performance reports to the Office of Economic Opportunity ( OEO). These performance reports detail the unduplicated number and characteristics of clients served by contractors during the respective reporting period. They also provide OEO with information regarding the causes of homelessness reported by program clients and, if applicable, the types of services delivered to clients by contractors. Program staff review all submitted reports for accuracy and to assure that contractors are meeting program requirements regarding average daily occupancy, service delivery and verification of client homelessness. Data collected from these individual contractor performance reports is compiled into program mid- year and end- of- the year reports. These reports are distributed to ESG contractors, the North Carolina State Office of the Department of Housing and Urban Development, members of the Interagency Council for Coordinating Homeless Programs ( ICCHP), the NC Department of Health and Human Services and, upon request, to other state agencies, nonprofit organizations and the general public.
On- site monitoring visits will be conducted by program staff to selected contractors throughout the program year. During these visits contractor program operations will be observed and facilities will be toured. OEO staff will review records of program expenditures to determine that all funds are being spent according to the budget approved by OEO. Randomly- selected client files will be examined to assure that eligible persons are being served and that one or more essential services are being provided to clients as required by program regulations. Contractor bylaws, board minutes, and personnel policies will be reviewed to assure that the grantee is operating properly and in compliance with all federal regulations. The program plans to monitor 10% to 15% of ESG contractors on site during 2006.
Priority for on- site monitoring is given by OEO to:
•
contractors receiving ESG funds for the first time,
•
contractors with fiscal, management, and/ or service delivery problems identified by program staff through review of grantee reports;
•
contractors for which complaints regarding their fiscal, management or service delivery performance have been received by OEO from clients, staff, volunteers and/ or the general public.
Another aspect of program monitoring is frequent telephone conversations between program staff and the grantee programs throughout the grant period. Contractors call program staff throughout the year with questions about ESG regulations, program changes, grant requirements and other issues regarding their programs. Program staff also initiates telephone calls to contractors to question information contained in monthly requests for reimbursement or to investigate reports received regarding the grantee’s performance.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 44
Geographic Distribution
ESG funds are made available statewide. In the State’s 2006 Program year ( July 1, 2006 – June 30, 2007), it is anticipated that ESG funds will be distributed to over 100 nonprofit organizations and three units of local government operating over 140 emergency and/ or transitional facilities in at least half of the State’s 100 counties. 2006 Consolidated Annual Action Plan - Amended
March 31, 2006 45
HOME Investment Partnerships ( HOME) Program
In 2006 North Carolina expects to receive an allocation of approximately $ 20,000,000 of federal HOME Investment Partnership Program funds, based on the previous year's allocation. State- appropriated matching funds of $ 1,750,945 will also be available for the 2006 program year. Ten percent of the 2006 HOME allocation and program income ( approximately $ 2,000,000) will be reserved for administration. The state will also receive $ 680,000 from the American Dream Downpayment Initiative ( ADDI).
Administered by the North Carolina Housing Finance Agency, the HOME Program will provide financing to nonprofit housing organizations, for- profit developers, lead regional organizations and lo

2006 North Carolina
Consolidated Annual Action Plan
Participating Agencies:
North Carolina Division of Community Assistance
North Carolina Housing Finance Agency
North Carolina Department of Health and Human Services, Office of Economic Opportunity
North Carolina Department of Health and Human Services, AIDS Care Unit
Amended 3- 31- 06
2006 Consolidated Annual Action Plan - Amended
March 31, 2006
Table of Contents
Executive Summary........................................................................................................................ .........
3
Consolidated Planning Process.................................................................................................................
5
Resources & Programs to Meet North Carolina’s Housing Needs ..........................................................
6
North Carolina’s Housing Resources ................................................................................................
6
North Carolina’s Housing Programs..................................................................................................
8
Table: Housing Resources by Funding Source & Administrating Agency............................
8
North Carolina’s Housing Needs.......................................................................................................
9
Geographic Distribution...................................................................................................................
11
Matching Requirements................................................................................................................... .
11
Housing Activities to be Undertaken........................................................................................................
12
Table: Federal Funding through the Core Programs – Rent Assistance and Household Services....................................................................................................................... ...........
12
Table: Federal Funding through the Core Programs – Acquisition, Rehabilitation, Production, and Related Infrastructure...................................................................................
13
Summary of Households to be Assisted............................................................................................
15
Chart: Most of the Funding will be Used for High Priority Needs........................................
15
Chart: Most of the Households to be Assisted are High Priority Needs Households.............
15
Housing and Service- Related Objectives..........................................................................................
16
Other Actions........................................................................................................................ ..................
17
Fair Housing Activities.....................................................................................................................
17
Anti- Poverty Strategies.....................................................................................................................
18
Capacity Building and Technical Assistance....................................................................................
19
Interagency Collaboration & Coordination.......................................................................................
21
Addressing Weaknesses in the Current Housing Delivery System...................................................
22
Legislative Initiatives.................................................................................................................... ...
24
Lead- Based Paint Hazard Activities..................................................................................................
24
Descriptions of Programs....................................................................................................................... .
26
AIDS Care Unit Programs.................................................................................................................
26
DCA Programs....................................................................................................................... ..........
27
NCHFA Programs....................................................................................................................... .....
29
OEO Programs....................................................................................................................... ..........
32
CDBG Program Report ...........................................................................................................................
33
ESG Program Report......................................................................................................................... ......
41
HOME Program Report......................................................................................................................... ..
46
HOPWA Program Report.........................................................................................................................
51
Public Participation.................................................................................................................. ...............
54
Applications and Certifications................................................................................................................
60
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 2
Executive Summary
This document serves as North Carolina’s application to the U. S. Department of Housing and Urban Development for the following funding for housing- related projects:
􀂃
$ 26.6 million in Community Development Block Grant ( CDBG) funds, to be administered by the Department of Commerce, Division of Community Assistance,
􀂃
$ 20 million in HOME Investment Partnership Program ( HOME) funds, $ 680,000 in American Dream Downpayment Initiative ( ADDI) funds, and additional HOME match and Home match interest income to be administered by the North Carolina Housing Finance Agency,
􀂃
$ 2.4 million in Emergency Shelter Grant ( ESG) funds, to be administered by the Department of Health and Human Services, Office of Economic Opportunity, and
􀂃
$ 2.01 million in Housing Opportunities for Persons With AIDS ( HOPWA) funds, to be administered by the Department of Health and Human Services, AIDS Care Unit.
The State’s housing needs have been prioritized in the following categories1:
High Priority Need
Medium Priority Need
Lower Priority Need
􀂃
Homeless Families and Individuals
􀂃
Nonhomeless Persons with Special Needs
􀂃
Urban Renters Earning 0- 30% of MFI
􀂃
Rural Renters Earning 0- 50% of MFI
􀂃
Existing Urban Homeowners Earning 0- 30% of MFI
􀂃
Existing Rural Homeowners Earning 0- 50% of MFI*
􀂃
Urban Renters Earning 31- 50% of MFI
􀂃
Rural Renters Earning 51- 60% of MFI
􀂃
Existing Urban Homeowners Earning 31- 50% of MFI
􀂃
Existing Rural Homeowners Earning 0- 50% of MFI*
􀂃
Urban Renters Earning 51- 80% of MFI
􀂃
Rural Renters Earning 61- 80% of MFI
􀂃
Existing Homeowners Earning 51- 80% Median Family Income
􀂃
Potential Homebuyers Earning 30- 80% of MFI whose needs are not met by the market
* Existing Rural Homeowners are differentiated in priority by type of activity and/ or type of household ( elderly are considered high priority, non- elderly medium priority)
Distribution of Funds by Priority Need Category$ 0$ 5,000$ 10,000$ 15,000$ 20,000$ 25,000$ 30,000DCANCHFAOEOACUFunding ( in thousands) HighMediumLow
1 Urban areas are defined as those that qualify as entitlement areas for CDBG funds. All other areas of the state are considered rural.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 3
From the four federal programs, 65% of the funds are targeted to households in a High Priority Need category, 23% are targeted to households in a Medium Priority Need category, and 12% are targeted to households in a Low Priority Need category.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 4
The Consolidated Planning Process
The Consolidated Plan serves as the application for the State to receive federal funds for four programs: the Community Development Block Grant ( CDBG), the HOME Investment Partnerships Program ( HOME), the Emergency Shelter Grants Program ( ESG), and the Housing Opportunities for Persons with AIDS Program ( HOPWA). It is a collaborative effort between the four state agencies receiving the funds from the U. S. Department of Housing and Urban Development. In addition to being an application, the Consolidated Plan serves as a planning document that addresses the major housing and community development needs affecting North Carolina communities, determines priorities for addressing those needs, and lays out an annual strategy for using the resources available. Although the state cannot meet all of the need, it can strategically invest its limited resources to address and alleviate some of the need.
2005 Consolidated Annual Action Plan
Three basic goals underlie the Consolidated Plan:
􀂃
to provide decent and affordable housing,
􀂃
to provide a suitable living environment, and
􀂃
to expand economic opportunity.
The primary means through which these goals are achieved is the provision of affordable housing. Each agency operates programs that help to fulfill these goals, while meeting housing and service- related needs statewide.
The first step in the planning process was the creation of the North Carolina Consolidated Plan 2006- 2010, in which major housing and community development needs affecting the state were identified. Where available, quantitative data on needs were examined. The plan was also built on the state’s experience in administering the four programs. The 2006 Consolidated Annual Action Plan is based on the North Carolina Consolidated Plan 2006- 2010 and the priority needs identified in that plan.
This draft was made available for review on October 4, 2005 on the website of the Division of Community Assistance at www. ncdca. org, and the web site of the North Carolina Housing Finance Agency at www. nchfa. com. Copies of the plan were distributed to federal depository libraries across the state. Furthermore, copies of the plan were available by contacting DCA. A public hearing will be held on October 6, 2005 and comments received on this draft through November 4, 2005. The final draft will be submitted to the U. S. Department of Housing and Urban Development on November 15, 2004.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 5
Resources & Programs to Meet North Carolina’s Housing Needs
North Carolina’s Housing Resources
( Section 91.220( b)( 1))
This year, the State proposes to assist over 4,100 households and 36,000 homeless individuals and families through the four Department of Housing and Urban Development programs that fund the construction/ rehabilitation of housing units, home buyer assistance for existing housing, rental assistance and some housing- related services. These 4 programs are:
􀂃
The Small Cities Community Development Block Grant Program ( CDBG)
Funds help local governments improve the housing stock and infrastructure of deteriorating residential neighborhoods, support public services and homeownership programs, install water and sewer facilities for residential areas or job- creating industrial sites, provide loans to large and small businesses, and increase the capacity of local non- profits to assist local governments in the furtherance of these goals. The N. C. Department of Commerce’s Division of Community Assistance ( DCA) administers CDBG funds for housing and community development activities, while funds for economic development activities are administered by the N. C. Commerce Finance Center. The State expects to issue grants totaling approximately $ 26.6 million in CDBG funds for housing related activities in 2006.
􀂃
The HOME Investment Partnerships Program ( HOME) and The American Dream Downpayment Initiative Program ( ADDI)
HOME Funds help local governments, nonprofit organizations, and for- profit developers build or improve affordable housing. ADDI Funds help low- income first- time homebuyers to purchase affordable homes. Both HOME and ADDI are administered by the N. C. Housing Finance Agency. The State expects to receive $ 20 million in HOME funds and $ 680,000 in ADDI funds during 2006.
􀂃
The Emergency Shelter Grants Program ( ESG)
Funds help local governments and nonprofit organizations support emergency shelters and transitional housing for the homeless, provide essential services, and prevent homelessness. ESG is administered by the Office of Economic Opportunity in the N. C. Department of Health and Human Services. The State expects to receive $ 2.4 million in ESG funds during 2006.
􀂃
Housing Opportunities for Persons With AIDS Program ( HOPWA)
Funds help nonprofit agencies meet the housing needs of persons living with HIV/ AIDS and their families. The AIDS Care Unit in the N. C. Department of Health and Human Services administers HOPWA. The State expects to receive $ 2,010,000 in HOPWA funds during 2006.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 6
To conduct housing- related activities, the State uses nonfederal as well as federal funds. The available funding sources can be categorized as follows:
Federal
State
Private Resources
􀂃
Community Development Block Grant Program ( CDBG)
􀂃
Emergency Shelter Grants Program ( ESG)
􀂃
HOME Investment Partnership Program ( HOME)
􀂃
Housing for Persons with AIDS Program ( HOPWA)
􀂃
North Carolina Housing Trust Fund ( HTF) and HOME Match funds appropriated by the General Assembly
􀂃
Housing Credits
􀂃
Mortgage Credit Certificates
􀂃
Mortgage Revenue Bonds
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 7
North Carolina’s Housing Programs
( Section 91.220( b)( 2))
Housing Resources by Funding Source & Administrating Agency
Name of Program
Administering Agency
Anticipated Funding for FY 06 ( in $ 000s)
Program Directly Administered?
Not administered directly, funds are distributed to…
Federal Funds
CDBG( 1)
Small Cities Community Development Block Grant Program
Division of Community Assistance
26,606
No
Units of local government in non- entitlement areas
HOME & ADDI
Down Payment Assistance Program
NCHFA
653
No
Private mortgage lenders
HOME
IDA Loan Pool Program
NCHFA
777
No
Nonprofit organizations and units of local government
HOME
New Homes Loan Pool Program
NCHFA
2,849
No
Nonprofit organizations and units of local government
HOME
Rural Opportunity Mortgage Program( 3)
NCHFA
5,179
No
USDA
HOME
Rental Production Program
NCHFA
5,179
Yes
HOME
Rental Preservation Loan Program( 3)
NCHFA
2,590
Yes
HOME
Self- Help Housing Program
NCHFA
1,657
No
Self- help housing organizations
HOME
Single- Family Rehabilitation Program
NCHFA
4,143
No
Units of local government, nonprofits and regional agencies
HOME
Supportive Housing Development Program
NCHFA
1,036
Yes
ESG*( 2)
Emergency Shelter Grants Program
Office of Economic Opportunity
2.425
FY 06- 07
No
Nonprofit organizations and units of local government
HOPWA*
Housing Opportunities for Persons with AIDS Program
AIDS Care Unit
2,010
No
HIV Care Consortia, nonprofit organizations, adult day care providers, family care homes, and housing authorities
Nonfederal Public Resources ( State Funds)
HTF
Rental Production Program
NCHFA
4,500
Yes
HTF
Supportive Housing Development Program
NCHFA
3,000
Yes
HOME Match
Key Program ( TBRA in partnership with DHHS)
NCHFA
2,800
Yes
GA Appropriation
Home Protection Pilot Program
NCHFA
700
No
Counseling agencies
HTF and Other Agency Funds
Urgent Repair Program
NCHFA
2,500
No
Units of local government, nonprofits and regional agencies
Private Resources
Housing Tax Credits*( 4)( 5)
Federal and State Housing Credits
NCHFA
149,940
Yes
Mortgage Credit Certificate*
Private Activity Volume Cap Allocation
NCHFA
100,000
No
Private mortgage lending institutions statewide
Mortgage Revenue Bonds*
Mortgage Loan Program
NCHFA
237,500
No
Private mortgage lending institutions statewide
( 1) The CDBG funds in this table and this report are only those funds designated strictly for housing activities; CDBG funds used in the economic development, infrastructure ( excluding hook- ups), urgent needs, and capacity building categories are not included. Total dollar amounts are also exclusive of administration and technical assistance costs.
( 2) Must be used for shelter operations, client services and homeless prevention
( 3) Includes 4% bonds.
( 4) Figure is equity generated, not credits allocated.
* These programs have funding that must be used for a specific housing- related activity and/ or must be targeted for specific populations ( nondiscretionary funding). The other programs' funding may have income restrictions, but the types of housing activity and target population are not restricted ( discretionary funding). 2006 Consolidated Annual Action Plan - Amended
March 31, 2006 8
These funds, along with other private resources, are expected to be available in 2006 to address the program goals, priority needs, and specific objectives described in this plan. The state and private resources, especially the Mortgage Revenue Bonds, Federal and State Housing Credits and Housing Trust Fund, will be used in conjunction with federal HOME and CDBG funds to develop rental housing, rehabilitate existing housing, and provide homebuyer assistance to first- time home buyers. For a complete list of housing and service- related programs administered by these agencies, see the Descriptions of Programs section.
North Carolina’s Housing Needs
For the benefit of the U. S. Department of Housing and Urban Development, our partnering agencies, and the public, the State is asked to draft a housing strategy every five years. The purpose of the strategy is to outline the State’s plans for the next five years for meeting housing and community development needs. The priority needs are based upon housing and population information captured from census data special tabulations, which yield the incidence of certain housing problems ( overcrowding, inadequate plumbing facilities, cost burden, etc.) among the population. A five- year plan also sets the framework from which each year’s annual action plan can be drawn. The Annual Action Plan further details how the State will accomplish its five- year goals during annual program cycles.
This cycle’s five- year strategy, called the North Carolina Consolidated Plan 2006- 2010, has been completed and will be submitted to the U. S. Department of Housing and Urban Development in conjunction with this annual action plan in November 2005. The needs are listed below are those identified through the Consolidated Plan process through quantitative data, qualitative data, and numerous public meetings with major stakeholders and citizens across the state. Because the State cannot possibly meet all of the housing needs with its limited resources, when determining those priority needs it also considered strategic investment and the appropriateness of resources available to realistically meet the needs. Figure 1 on the following page, the North Carolina Housing Priorities Chart, details the state’s housing priorities based upon the Housing Market Analysis and Needs Assessment performed as part of the 2006- 2010 Consolidated Plan.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 9
Figure 1, North Carolina Housing Priorities Chart Homeless PersonsRenters at 31- 50% Renters at 51- 80% Operating Costs for Homeless ProvidersFinancing of Rental RehabilitationFinancing of Rental RehabilitationSupportive ServicesFinancing of New ConstructionFinancing of New ConstructionEmergency Shelter Construction and RehabilitationHomeowners at 31- 50% Homebuyers at 30- 80% in areas whereSupportive HousingComprehensive Rehabilitation needs are not met by the marketNon- Homeless Persons w/ Special Needs** RefinancingIndividual Development AccountsRent Assistance First and Second MortgagesSupportive housing Downpayment AssistanceOperating Assistance Financing of New ConstructionSupportive ServicesHomeowners at 51- 80% where needs areRenters at 0- 30% not met by marketRent AssistanceComprehensive RehabilitationHomeless PreventionRefinancingFinancing of Rental RehabilitationFinancing of New Construction Homeowners at 0- 30% Urgent RepairComprehensive RehabilitationForeclosure Prevention ActivitiesHomeless PersonsRenters at 51- 60% Renters at 61- 80% Operating Costs for Homeless ProvidersFinancing of Rental RehabilitationFinancing of new constructionSupportive ServicesFinancing of New ConstructionFinancing of rental rehabilitationEmergency Shelter Construction and RehabilitationHomeowners at 0- 50% Homebuyers at 30- 80% in areas whereSupportive HousingComprehensive Rehabilitation needs are not met by marketNon- Homeless Persons w/ Special Needs** for the Non- elderlyIndividual Development AccountsRent Assistance Replacement HousingFirst and Second MortgagesSupportive Housing RefinancingDownpayment AssistanceOperating Assistance Residential Water/ Sewer InfrastructureFinancing of New ConstructionSupportive ServicesHomeowners at 51- 80% Renters at 0- 50% Comprehensive RehabilitationRent AssistanceRefinancingHomeless PreventionResidential water/ sewer infrastructureFinancing of Rental RehabilitationFinancing of New Construction Homeowners at 0- 50% Urgent RepairComprehensive RehabilitationReplacement HousingForeclosure Prevention ActivitiesResidential Water/ Sewer Infrastructure ( when danger to public health) ** Includes the following: Persons with DisabilitiesLow- income Elderly PersonsPersons with HIV/ AIDSRuralHighMediumLowUrban
The State will use the federal, state and private resources detailed in this plan to help meet some of the needs above by undertaking a range of activities during the 2006 program year. Most families and individuals affected by the disaster have found permanent housing with the help of a variety of funding sources.
In 2001, the North Carolina Department of Commerce initiated the 21st Century Communities program. The purpose of this program is to support those counties that need assistance in positioning themselves more effectively for community and economic development. The North Carolina Department of Commerce accomplishes this goal by providing funding priority for selected counties above and beyond existing programs such as the William Lee Act. Ten counties were selected in 2002 for the first round of designation, with another six counties being designated in 2004. A third round of 21st Century Communities was selected in the summer of 2005, and those designations will be in effect for 2006. The four counties selected are Burke, Hyde, Montgomery, and Sampson.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 10
Geographic Distribution
( Section 91.220 ( d))
Each program has a unique method of geographic distribution. The funding for the Community Development Block Grant Program is directed to nonentitlement communities across the state. The program funding through the Emergency Shelter Grants Program, HOME Program, and the HOPWA Program is distributed statewide. The funding for the North Carolina Housing Trust Fund, appropriated by the General Assembly, is distributed statewide through programs of the North Carolina Housing Finance Agency.
Matching Requirements
The table below lists the federal and/ or state matching funds requirements for each of the programs.
Program
Federal Matching Requirement
State Matching Requirement
CDBG
The State is required to provide an annual 1: 1 match for federal administrative funds. The requirement is met by the State paying non- CDBG staff salaries.
Concentrated Needs applications are rated for local commitment, though no local match is required for funding. Revitalization Strategies applicants will be required to contribute a local match; the amount of that match has not yet been determined ( guidelines are scheduled for release in January 2006). In the Economic Development Program, all local governments except Tier 1 counties are required to provide a 25% match for the grant. A 5% match is required for Infrastructure grants, though that is waived for 21st Century Communities.
ESG
The State is required to match Emergency Shelter Grant funding received annually with an equal amount of funding from other sources. This requirement is passed to state grant recipients as allowed by ESG program regulations.
Each grantee must match the funding provided by the State with an equal amount of funds or voluntary efforts.
HOME
25% match required. This is a requirement of the State as a Participating Jurisdiction but it is not passed on to recipients under the state programs that are funded with HOME. Some of the State’s required match is appropriated by the General Assembly. The NCHFA provides the rest of the match.
There is no match requirement imposed by the State.
ADDI
There are no federal match requirements for the 2005 ADDI funds.
There is no match requirement imposed by the State.
HOPWA
There are neither federal nor state match requirements for this program.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 11
Housing Activities to be Undertaken
The two tables Federal Funding through the Core Programs, below and on the following pages, show how the four core programs will be used. The tables show the funding amounts ( in thousands of dollars) allocated for each priority need category ( low, medium, high) and show the number of households and individuals to be assisted. In reviewing the tables, it is important to recognize that the state considered strategic investment of its limited resources through its programs, as well as the appropriateness of the resources available to address the priority need categories.
HOPWA will be used to assist households and individuals with housing related services and tenant- based rent assistance ( both short and long term). ESG will provide funds to assist homeless shelters with operating costs, client services and homeless prevention activities. CDBG and HOME are primarily used to produce or rehabilitate housing, provide homebuyer assistance, and develop infrastructure required for housing development.
Federal Funding through the Core Programs – Rent Assistance and Housing- Related Services PriorityAgencyFunding SourceProgramActivityAnticipated Funding in $ 000sActual Households/ Individuals AssistedAssist Homeless Families and IndividualsOEOESGESGSupport Funding for Homeless Service Providers* $ 2,494 6,000 households and 30,000 individualsACUHOPWAHOPWARent Assistance**$ 1,450 1,635ACUHOPWAHOPWAHousing- Related Services*** $ 560 3,000Assist Renters Earning 0- 50% Median Family IncomeNCHFAHOME & MatchKey ProgramTenant Based Rental Assistance$ 2,800 125Total High Priority$ 7,304 40,760TOTAL$ 7,304 40,7* Funding to assist with operating costs of homeless shelters, provision of services to homeless clients and homeless prevention activities. ** For HOPWA, " rent assistance" inlcudes short term rent, mortgage, and utility payments ( STRMU) as well as tenant- based rent assistance ( TBRA) *** Includes housing information, resource identification, supportive services, and operating expenses for dedicated housing facilities. High Priority NeedsAssist Non- Homeless with Special Needs
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 12
Federal Funding through the Core Programs – Acquisition, Rehabilitation, Production, and Related Infrastructure PriorityAgencyFunding SourceProgramActivityAnticipated Funding in $ 000sAnticipated Households AssistedDCACDBGHousing DevelopmentRelated Infrastructure$ 50 3NCHFAHOMESupportive Housing Development ProgramNew Construction$ 518 26DCACDBGConcentrated NeedsRehabilitation, Replacement$ 651 14DCACDBGHousing DevelopmentRelated Infrastructure$ 162 8DCACDBGInfrastructureUtility Hook- Up$ 85 28DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 110 2DCACDBGScattered SitesRehabilitation, Replacement$ 1,128 25NCHFAHOME & MatchSupportive Housing Development ProgramNew Construction$ 518 26DCACDBGConcentrated NeedsRehabilitation, Replacement$ 1,627 36DCACDBGHousing DevelopmentRelated Infrastructure$ 495 83DCACDBGInfrastructureUtility Hook- Up$ 212 71DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 275 6NCHFAHOME MatchPreservation Loan ProgramRehabilitation$ 1,295 633NCHFAHOMERental Production ProgramNew Construction, Rehabilitation^^ $ 2,020 125DCACDBGConcentrated NeedsRehabilitation, Replacement$ 1,953 43DCACDBGInfrastructureUtility Hook- Up$ 255 85DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 6,430 143DCACDBGScattered SitesRehabilitation, Replacement, Urgent Repair$ 5,414 120NCHFAHOME & MatchSingle Family RehabProgramRehabilitation$ 2,735 68Total High Priority$ 25,933 1,545Medium Priority NeedsDCACDBGConcentrated NeedsRehabilitation, Replacement$ 977 22DCACDBGHousing DevelopmentRelated Infrastructure$ 297 50DCACDBGInfrastructureUtility Hook- Up$ 128 43DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 165 4NCHFAHOME MatchPreservation Loan ProgramRehabilitation$ 1,295 633NCHFAHOMERental Production ProgramNew Construction, Rehabilitation$ 2,331 144DCACDBGConcentrated NeedsRehabilitation, Replacement$ 977 22DCACDBGInfrastructureUtility Hook- Up$ 128 43DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 165 4DCACDBGScattered SitesRehabilitation, Replacement, Urgent Repair$ 3,722 83NCHFAHOME & MatchSingle Family RehabProgramRehabilitation$ 1,119 28Total Medium Priority$ 11,304 1,076Assist Non- Homeless Persons with Special NeedsAssist Rural Renters Earning 51- 60% of Median Family Income and Urban Renters Earning 31- 50% of Median Family IncomeAssist Rural Renters Earning 0- 50% of Median Family Income and Urban Renters Earning 0- 30% of Median Family IncomeAssist Rural Homeowners Earning 0- 50% of Median Family Income and Urban Homeowners Earning 0- 30% of Median Family Income^ A portion of the households assisted through DCAs programs will be for those with special needs. DCA is in the process of improving its data collection to incorporate special needs numbers into future plans. ^^ A portion of these units will serve homeless households. The Agency has no way of forecasting how many of these households will be homeless. High Priority Needs^ Assist Homeless Families and IndividualsAssist Rural Homeowners Earning 0- 50% of Median Family Income and Urban Homeowners Earning 31- 50% of Median Family Income
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Federal Funding through the Core Programs – Acquisition, Rehabilitation, Production, and Related Infrastructure ( continued) Low Priority NeedsDCACDBGConcentrated NeedsRehabilitation, Replacement$ 130 3DCACDBGHousing DevelopmentRelated Infrastructure$ 50 8DCACDBGInfrastructureUtility Hook- Up$ 17 6DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 22 1NCHFAHOMERental ProductionProgram New Construction, Rehabilitation$ 829 51DCACDBGConcentrated NeedsRehabilitation, Replacement$ 195 4DCACDBGInfrastructureUtility Hook- Up$ 26 9DCACDBGRevitalization StrategiesRehabilitation, Replacement$ 33 1NCHFAHOME & MatchSingle Family RehabRehabilitation$ 290 7DCACDBGHousing DevelopmentRelated Infrastructure$ 567 32DCACDBGIndividual Development AccountDownpayment Assistance$ 160 80NCHFAHOME & ADDIDownpayment Assistance ProgramHomebuyer Assistance$ 5,179 104NCHFAHOMEIDA Loan Pool ProgramHomebuyer Assistance$ 653 93NCHFAHOMENew Homes Loan PoolHomebuyer Assistance$ 777 40NCHFAHOMERD Leveraging ProgramHomebuyer Assistance$ 290 7NCHFAHOMESelf Help ProgramHomebuyer Assistance$ 2,849 142Total Low Priority$ 12,066 588TOTAL FEDERAL FUNDING$ 56,607 43,969Assist Rural Renters Earning 61- 80% of Median Family Income and Urban Renters Earning 51- 80% of Median Family IncomeAssist Homebuyers Earning 30- 80% of Median Family Income where needs are not met by the marketAssist Rural Homeowners Earning 51- 80% of Median Family Income and Urban Homeowners Earning 51- 80% of Median Family Income where needs are not met by the market
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March 31, 2006 14
Summary of Households to Be Assisted2
Of the total funding for housing activities to be undertaken, 58% ($ 30,872,000) of the funding is targeted to the high priority needs, 20% ($ 8,553,000) targets medium priority needs, and 23% ($ 26,510,000) targets lower priority needs. Of the total households to be assisted by funding, 61% of the households are in the high priority need category, 10% are in the medium priority need, and the remaining 29% are in the lower priority need category. The following pie charts summarize these numbers.
Most Households to be Assisted will be High Priority Needs HouseholdsHigh66% Low12% Medium22% High Priority Needs Receive the Majority of Funding High63% Low13% Medium24%
2 These figures and graphics do not include the 36,000 families and individuals that are expected to be assisted using Emergency Shelter grant funds nor the 3,000 households that are expected to be assisted with housing- related services from HOPWA; these activities are considered high priority.
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Housing and Service- Related Objectives
AIDS Care Unit
􀂃
To continue involvement with the NC Inter- Agency Council on Coordinating Homeless Programs, Housing Coordination/ Policy Council and NC Department of Health and Human Services Housing Workgroup.
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To ensure HOPWA Project Sponsors provide short- term rent, mortgage and utility assistance, tenant- based rental assistance, supportive services, housing information, resource identification and operating expenses ( dedicated housing facility) to persons living with HIV/ AIDS and their families.
Division of Community Assistance
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To target investments toward distressed rural areas and high priority small cities through the Commerce Department’s 21st Century Communities Initiative, State Development Zones, Tier 1 & Tier 2 counties, and support the EDA- funded Comprehensive Economic Development Strategies ( CEDS).
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To support development of soundly designed affordable rental and single- family housing in appropriate settings.
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To emphasize smart growth principles in CDBG program categories. Priority for funding will be given to projects that demonstrate design excellence, infill development, and more intense use of existing buildings in downtowns and nearby older neighborhoods.
North Carolina Housing Finance Agency
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To operate home ownership programs:
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Close 2,200 MRB loans and 250 MCC assisted loans
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Close 104 Rural Opportunity Mortgage ( ROM) loans in conjunction with USDA’s 502 direct program.
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Close 142 loans under the New Homes Program, 83 loans under the Self- Help Housing Program, and 40 loans under the IDA partnerships
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Rehabilitate 103 homes under the Single Family Rehab Program and 600 homes under the Urgent Repair Program
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To operate rental production programs:
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Allocate the state's $ 15 million federal Housing Credit volume cap
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Loan $ 9.6 million under the Rental Production Program
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Continue the refundable state Housing Credit
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Finance 10 projects with the capacity to serve around 200 individuals under the Supportive Housing Program
Office of Economic Opportunity
􀂃
To ensure the provision of emergency and/ or transitional housing, essential services, and/ or homeless prevention services to approximately 30,000 homeless individuals and 6000 homeless families. It is anticipated that over 100 nonprofit organizations and three units of local government operating over 140 emergency and/ or transitional facilities in 50 to 55 of the state’s 100 counties will receive funding in FY 2006.
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To successfully coordinate the 2006 North Carolina Conference on Homelessness, which will provide opportunities for homeless service providers to receive training and technical assistance.
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To continue its involvement with the North Carolina Interagency Council for Coordinating Homeless Programs ( ICCHP).
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To work with the ICCHP to implement strategies and policies outlined in the state’s ten- year plan to end homelessness in North Carolina.
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March 31, 2006 16
Other Actions
Each of the four state agencies will undertake additional actions to further the housing and support services goals of their organizations in the areas of Fair Housing/ Equal Opportunity Initiatives, Anti- Poverty Strategy, Capacity Building and Technical Assistance, Coordination and Collaboration, Housing Delivery Systems, Institutional Structure, Legislative and Public Policy Initiatives, and Lead- Based Paint Hazard Reduction.
Fair Housing Activities
For the 2006- 2010 Consolidated Plan, the Division of Community Assistance contracted with the North Carolina Fair Housing Center to analyze impediments to fair housing choice in North Carolina. This document is available by contacting the Division of Community Assistance directly. In conjunction with what was outlined in the five- year plan, the four agencies that contribute to the Consolidated Plan agree to uphold those and other precepts supporting fair housing, housing choice and equal opportunities through the programs they administer. In carrying our their regular programs and funding cycles, the state agencies list the following ongoing activities and practices relative to promoting and furthering fair housing:
AIDS Care Unit
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The Unit will continue to expand the Tenant Based Rental Assistance program, which is designed to increase housing choice for low- income persons with HIV/ AIDS and their families.
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The Unit will work with HOPWA Project Sponsors and case managers to ensure that persons living with HIV/ AIDS will have access to a housing care plan to promote permanent/ permanent supportive housing.
Division of Community Assistance
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The Division will continue to implement various strategies, chief of which is to increase local activities that identify and reduce barriers to fair and affordable housing in all localities receiving Community Development Block Grant Program funding.
North Carolina Housing Finance Agency
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The Agency will continue to ( 1) distribute its Elderly Housing Rights and Consumer Protection Program information brochures, ( 2) provide Fair Housing training in conjunction with its Housing Credit Program Compliance and Service Coordinator workshops, and ( 3) publish Spanish translations of its MRB and MCC Program information.
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All developers of affordable rental housing financed by the Agency are required to develop and implement Affirmative Fair Housing Marketing Plans, which are reviewed by the Agency for effectiveness and proper implementation. Projects receiving HOME loans must certify that they have developed and adopted affirmative marketing procedures for HOME- assisted housing containing five or more units.
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The Agency will publicize the availability of its updated guide published in October 2005, Fair Housing for Tenants with Disabilities; Understanding Reasonable Accommodations and Reasonable Modifications. The Guide will also be included in the Agency’s annual training for LIHTC rental property managers.
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March 31, 2006 17
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The Agency will solicit voluntary agreements with two more lenders in 2005 to work together with the Agency in ensuring that every first- time home buyer in North Carolina is informed about the Agency’s loan programs during the loan application process.
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The Agency will process preliminary eligibility analysis process to reach 250 prospective homebuyers in unserved areas of the state. Renters will complete a worksheet and the Agency will assess the renters’ eligibility for a mortgage and make a referral to a lender.
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The Agency will work more closely with partners to educate homebuyers, increase the supply of affordable housing, provide assistance with downpayment and closing costs and offer financial options to support HUD’s “ Blueprint for the American Dream”.
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The Agency, in partnership with USDA- Rural Development, will offer 200 leveraged loans to serve low- income households in rural North Carolina through its Rural Opportunity Mortgage program.
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The Agency chairs the Housing Coordination and Policy Council, which is pursuing an effort to evaluate local zoning barriers to affordable housing.
Anti- Poverty Strategies
Division of Community Assistance
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DCA continues to utilize Small Cities Community Development Block Grant Funds for use in establishing or continuing Individual Development Account ( IDA) programs throughout the state. IDAs are dedicated savings accounts that can only be used for purchasing a first home, education or job training expenses, or capitalizing a small business. In DCA’s program, funding is exclusively for home ownership. Only residents that are members of households below 80 percent of MHI are eligible to participate. In partnership with local governments, IDAs are managed by community organizations and accounts are held at local financial institutions. Participants are introduced into the mainstream financial system, provided credit counseling and homebuyer and financial literacy, and receive match money for down payment assistance upon successful completion of the program.
􀂃
Continuing decline and disinvestment in many neighborhoods that spills over into surrounding areas point to a need for different approaches to rebuilding communities. Many communities riddled with poverty require a comprehensive approach to address their needs, one that allows for flexible funding and activities that cut across traditional DCA programs. Entering its fifth and final year of the first round of funding in 2006, the Revitalization Strategies program allows for a holistic approach to community and economic development enabling local governments to address multiple needs in high poverty areas. This category provides flexible multi- year funding to help alleviate poverty and carry out a long- term, sustainable revitalization strategy in selected target neighborhoods. The first round of communities that were awarded grants in 2001, and are scheduled to receive funds for their fifth year of activities in 2006, are Brevard, Caldwell County, Elizabeth City, Hamlet, Hyde County, Roanoke Rapids, Sanford, Whiteville, and Wilson. Madison County’s program was only for four years, ending in 2005. The second round of RS grants will be awarded in 2006. The guidelines and application will be released in January 2006, with applications due in May and awards made in late summer or early fall 2006. Small planning grants will be provided using 2006 funds, with full funding being made available.
􀂃
In 2006 the Division of Community Assistance will conduct a round table with leaders from across the state in business and economic development to explore ways that CDBG funds can
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 18
best be used to promote small business development as a way to move low- wage and dislocated workers into greater self- sufficiency and out of poverty.
North Carolina Housing Finance Agency
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The Agency will continue to finance supportive rental housing through the federal and state housing tax credit programs and through the Rental Production Program.
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The Agency will broaden its IDA home ownership initiative to include providing matching funds and second mortgages to IDA participants who will be purchasing homes. The program used to serve households at 200% of poverty and below who were in NC Department of Labor’s IDA program under the federal Assets for Independence Act ( AFIA); it will now serve households participating in any home ownership IDA program in North Carolina.
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The Agency will continue funding developments that are connected to public housing authorities’ Family Self- Sufficiency Programs through both rental and home ownership programs.
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The Agency will continue funding transitional and permanent housing for the homeless and nonhomeless persons with special needs through the Supportive Housing Development Program.
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The Agency will provide funds to support a homeless policy specialist in the Office of the Secretary of Health and Human Services who will work with the Interagency Council for the Coordination of Homeless Programs.
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The Agency will continue to operate its Home Saver Loan Program that incorporates a Job Loss Feature to help borrowers who have become involuntarily unemployed to maintain their home.
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The Agency will be administering the Home Protection Pilot Program, funded in 2004 by a $ 1.75 million special allocation from the General Assembly and in 2005 by a $ 700,000 allocation. This program will create a loan pool to help prevent foreclosures due to job loss in targeted counties. It will also strengthen the housing counseling network.
Capacity Building and Technical Assistance
AIDS Care Unit
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The Unit will provide technical assistance workshops, planning meetings, and one- on- one technical assistance to assist organizations with items such as resource development and housing information
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The Unit will continue to utilize technical assistance from the Supportive Housing Collaborative and HUD Field Officer to strengthen administration of North Carolinas HOPWA program.
Division of Community Assistance
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The Division will continue to implement the Capacity Building program for nonprofit organizations. Grants of up to $ 75,000 will be available to each organization. Nonprofit organizations that receive capacity building funds are expected to develop projects and apply for CDBG funding in partnership with their local governments within two years of award.
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Technical Assistance funds for 2006 will concentrate on developing the professional skills and capabilities of local community development grant administrators. DCA and the School of Government are assessing the current demand for a professional certification program for administrators of CDBG grants. This program, which may be offered in 2006, will lead to a certificate of completion that assures local governments that the people they engage to administer community development grants meet and maintain high professional standards of knowledge, ethics, and competence.
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March 31, 2006 19
North Carolina Housing Finance Agency
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The Agency’s Home Ownership Business Group will continue working with the Real Estate Commission to provide continuing education classes for real estate professionals.
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The Agency will continue to provide monthly lender training sessions throughout the state to educate mortgage professionals about the Agency’s 100%, below- market- rate loans, with and without downpayment assistance.
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The Agency’s Rental Investment Business Group has statewide responsibility for Contract Administration of the U. S. Department of Housing and Urban Development’s Section 8 Project- based Rental Assistance Program, which utilizes over 600 rental developments with over 21,000 housing units in North Carolina. The Agency has partnered with Quadel Consulting Corporation to manage the contract administration duties. Rental development owners will receive ongoing technical assistance on the U. S. Department of Housing and Urban Development Section 8 regulations.
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The Agency’s Strategic Investment Business Group will continue to collaborate with the Advanced Energy Corporation ( AEC) to train contractors and developers ( both nonprofit and for- profit) in techniques of building high performance houses. This training focuses on the interrelationships between house systems and the effective use of pressure diagnostics ( blower doors, duct blasters, manometers, etc.). Trainees have produced 265 units under the Agency’s New Homes and Self- Help loan pools. The Agency anticipates producing 200 more in 2006, all of them sold with 2- year guarantees of comfort and very low heating and cooling costs.
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The Agency will continue to administer its fair housing and service coordinator trainings in conjunction with its rental investment programs. Designed for service coordinators, housing managers, supportive service providers, and others who work with the elderly or special needs residents, these workshops have covered topics that include aging, the basics of service coordination, legal issues and housing, and planning community wellness programs.
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The Agency will continue to hold at least one rental development roundtable discussion each summer.
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The Agency will offer six trainings for tax- credit developers, and three trainings for developers using the Rental Production Program.
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The Agency will continue to conduct a Housing Developers’ Workshop Forum at the Agency’s annual Housing Forum. It will also offer sessions on several of its other programs, providing insight, instruction, and technical assistance to the attendees participating in those programs.
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The Agency will be administering the Home Protection Pilot Program, in which a special appropriation of $ 700,000 by the General Assembly in 2005 will be used to strengthen housing counseling in selected counties, in addition to providing for households to prevent foreclosure due to job loss.
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The Agency will develop a construction to permanent loan in partnership with Rural Development to increase affordable housing stock throughout the state.
Office of Economic Opportunity
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The Office will continue to provide staff to coordinate the annual conference on homelessness sponsored by the Interagency Council for Coordinating Homeless Programs ( ICCHP). This conference provides training and technical assistance to over 400 representatives of homeless service providers across the state each year.
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The Office will provide training to all new, approved applicants for Emergency Shelter Grants ( ESG) Program funding in the spring of 2006.
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The Office will continue to promote the coordination of housing repairs through local available resources for families receiving services under the North Carolina Weatherization Assistance Program and the Heating Air Repair and Replacement Program.
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March 31, 2006 20
􀂃
The Office will continue to support housing coordination activities of the Community Services Block Grant program recipients that serve as local Comprehensive Housing Development Organizations.
Interagency Coordination and Collaboration
AIDS Care Unit
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The Unit will continue as an active participant on the Housing Coordination and Policy Council, NC Department of Health and Human Services Housing Workgroup as well as the Inter- agency Council on Coordinating Homeless Programs ( ICCHP).
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The Unit will continue to collaborate with the other NC entitlement cities to ensure consistency among administration of the HOPWA Program.
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The HOPWA Program and Ryan White Program, which are both in the AIDS Care Unit, will continue to work together on leveraging funds as it relates to providing emergency financial assistance to persons living with HIV/ AIDS and understanding that “ housing is healthcare”.
Division of Community Assistance
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The Division will continue to work with other governmental and non- governmental groups such as the North Carolina Department of Labor, the North Carolina Housing Finance Agency, and the North Carolina IDA and Asset Building Collaborative to support and fund IDA and other savings programs in the state.
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The Division will continue to engage other state agencies and federal allies in funding priority projects in 21st Century Communities. The counties of Burke, Hyde, Montgomery, and Sampson were selected in 2005 to be the third round designees for 21st Century Communities, and will receive priority status in 2006.
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If needed, the Division is prepared to react to severe economic crises such as plant closures and mass layoffs by coordinating economic recovery plans and implementing recovery activities.
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DCA, in conjunction with the Commerce Finance Center and the North Carolina Rural Economic Development Center, will initiate a round table discussion in late 2005 to determine the best use of CDBG- Rural Center partnership funds for economic development in 2006.
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The Division will continue to serve on statewide housing policy boards such as the Housing Coordination and Policy Council.
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DCA will continue to collaborate with state and local agencies such as the North Carolina Redevelopment Center and local emergency management and housing agencies on disaster relief projects as they arise.
North Carolina Housing Finance Agency
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The Agency will partner with Advanced Energy Corporation ( AEC) of Raleigh, North Carolina, to train and assist local partners under two home ownership programs. AEC’s services will include providing low- income homebuyers with two- year guarantees that their heating and cooling costs with not exceed a very low, set level ( as low as $ 18/ month). This broadens the windows of affordability and enhances marketing effectiveness.
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The Agency will continue as a member of the Interagency Coordinating Council for Homeless Programs ( ICCHP).
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The State will continue its collaborative relationship with the Department of Labor by providing matching funds and second mortgages for participants in the Department of Labor’s IDA
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 21
program. It will also broaden its support of IDA programs by developing partnerships statewide with other IDA programs.
􀂃
The Agency will continue to operate the Lead Abatement Partnership Program, responding to actual cases of lead- poisoned low- income children in owner- occupant situations. As cases are referred by the Department of Environment and Natural Resources, the Agency will locate and contract with local rehabilitation organizations to oversee lead abatement and comprehensive housing rehabilitation.
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The Agency will continue to implement the Displacement Prevention Demonstration fund which allows the Independent Living Program and the Lead Hazard Control Branch to assist households facing displacement due to mobility limitations and lead paint poisoning, respectively.
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The Agency’s executive director, A. Robert Kucab, is a board member for Homes4NC, a new foundation created by the NC Realtors Association to support affordable housing initiatives.
Office of Economic Opportunity
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The Office will continue as an active member of the Housing Coordination and Policy Council.
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The Office will coordinate with the North Carolina Housing Finance Agency to continue to promote the use of Urgent Repair program funds with weatherization services being performed through the N. C. Weatherization Assistance Program.
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The Office will actively promote the coordination of local anti- poverty efforts of community action agencies with local, state, and national housing programs.
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The Agency will work with DHHS and local lead agencies to administer the Key Program.
Addressing Weaknesses in the Current Housing Delivery System
AIDS Care Unit
􀂃
The ACU recognizes as a weakness, the 7% cap on administrative costs covered by HOPWA is unworkable and too low, making it difficult for project sponsors meet increased administrative responsibilities and attend much needed training. Underpaying administrative costs could eventually prevent organizations from applying for future funding. However, the Unit continues to promote increased leveraging of HOPWA funds as a strategy for agencies to subsidize administrative costs.
Division of Community Assistance
􀂃
Among its strengths, the Division credits its highly motivated professional staff. Additionally, it mentions the redesigned and new programs, which offer more local communities opportunities to participate. The Division currently operates a Capacity Building program that tries to increase nonprofit participation in the CDBG Program/ Process. The Division also considers its sponsorship of Housing Development training for nonprofits as a strength because it helps to increase their ability to develop better housing projects. Nevertheless, the current state budget conditions limit state support for the agency’s administrative budget; this presents a weakness in the Division’s ability to provide housing services. The Division continues to see training and professional development for staff as an opportunity to improve the delivery of services in 2006.
North Carolina Housing Finance Agency
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The Agency has private activity volume cap sufficient to meet its 2006 homeownership goals. It offers a variety of loan products ( conventional, FHA, USDA, and VA) and has 90 and 150 day interest rate guarantees. The Agency is currently serving only approximately 70% of the state’s counties with its mortgage products, but intents to expand coverage by expanding third
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 22
party originations, continuing to offer lender incentives to increase loan production in unserved areas of the state and offering a leveraged program in conjunction with USDA Rural Development. The Agency will also increase income and sales price limits and down payment assistance.
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The Agency will continue to provide application workshops and housing development workshops for organizations interested in developing supportive housing for individuals with special needs.
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One of the current weaknesses in the housing delivery system is an overtaxed housing counseling delivery system. Another is the lack of financial assistance for households who unexpectedly find themselves at risk of foreclosure. At the request of the General Assembly, the Agency is administering the Home Protection Pilot Program. This program will provide loans to assist homeowners in target regions who are at risk of foreclosure, and will strengthen the housing counseling delivery system in those areas.
Office of Economic Opportunity
􀂃
Following the state’s participation in federal Homeless Policy Academies in 2003 and 2004, the NC Interagency Council for Coordinating Homeless Programs ( ICCHP) formulated a draft state plan to end homelessness. This state- level action plan to end homelessness is seen as one way to ensure that homeless people have a more efficient and coordinated system to assist and support them in their efforts to transition from homelessness to stability.
􀂃
Nonprofit agencies and local governments providing shelter and services to homeless people in the state have found it increasingly difficult to secure the funding needed to maintain existing homeless shelters, produce affordable housing for extremely low- income citizens and to improve or, in some cases, establish homeless access to needed services. The only program administered by the State specific to homeless people ( and the only one funding supportive services and operating costs for homeless shelters) is the federally- funded Emergency Shelter Grants ( ESG) Program, administered by the Office of Economic Opportunity.
􀂃
In 2004 following the ICCHP’s participation in the second federal Homeless Policy Academy, the Council continued refining the state’s draft Ten- Year Plan to End Homelessness. This draft Plan will be available for public comment in the fall of 2005. As part of that planning process, the Council has facilitated a Discharge Planning Work Group that has developed a preliminary report of recommendations about how North Carolina can reduce the number of persons who are discharged into homelessness from state, or statewide, publicly funded systems. In the fall of 2005 the Council will complete preliminary recommendations on how to increase access for homeless persons to employment and training programs.
􀂃
In 2004 the ICCHP began facilitating a collaborative with a membership of homeless service providers and local governments from across the state, in an effort to increase North Carolina communities’ compliance with HUD mandates relating to Homeless Management Information Systems ( HMIS). The Carolina Homeless Information Network ( CHIN) anticipates beginning by the end of 2005, increasing our state’s chances of accessing available federal dollars for housing and services for homeless people.
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Currently, there are 27 different Continuums of Care ( CoC) in North Carolina. In July of 2005, the ICCHP decided to determine the interest of organizations not in CoC areas in the development of a Balance- of- State Continuum of Care application for submission in 2006.
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March 31, 2006 23
Legislative Initiatives
Division of Community Assistance
􀂃
The Department of Commerce will advocate for stronger tools to attract investment, jobs and economic vitality to urban core areas. To this end, DCA is working with the state Economic Development Committee to define and help locate potential development hubs throughout the state and produce new strategies that will create regional economic influence radiating from the newly created hubs.
􀂃
The Division of Community Assistance will work to expand the Main Street program.
􀂃
In light of current and possible future cuts to federal spending for the CDBG program, DCA will educate legislators to the need for state financial support for community development initiatives in rural parts of North Carolina.
North Carolina Housing Finance Agency
􀂃
The Agency plans to work to pass legislation to allow the same first- time homebuyer definition for all programs.
􀂃
The Agency plans to work to increase appropriations to the Housing Trust Fund and federal HOME Program match.
􀂃
One of the Agency’s legislative initiatives is to develop and administer the Home Protection Pilot Program. This program, allocated special funding from the General Assembly, will strengthen housing counseling in selected counties and create a loan pool to help prevent foreclosures due to job loss.
Lead- Based Paint Hazard Activities
Division of Community Assistance
􀂃
DCA will continue to encourage local units of government to be involved with lead- based paint removal programs. Furthermore, DCA will encourage local governments to work with agencies that are established primarily to mitigate lead- based paint conditions and provide for its removal, as well as address other environmental concerns.
North Carolina Housing Finance Agency
􀂃
All HOME- funded programs will continue to be in compliance with new U. S. Department of Housing and Urban Development lead regulations ( 25 CFR Part 35).
􀂃
The Agency will continue to participate in a quarterly, ad hoc lead hazards advisory group made up of concerned individuals from the Public Health, Environmental Protection, Affordable Housing, and Occupational Safety sectors.
􀂃
The Agency will continue to operate the established Lead Abatement Partnership Program ( LAP) using HOME funds. Under LAP, the Agency has offered assistance to low- income owner- occupants with a lead poisoned child ( above 20 μg/ dL) for over six years. On average, about 6 cases are handled per year.
􀂃
The Agency will continue to offer a new option under the LAP program. Using Housing Trust Fund funding set- aside through the Urgent Repair Program under the “ Displacement Prevention Demonstration”, the Agency will offer up to $ 5,000 per unit to LAP referrals whose situation may be more appropriately handled through DENR’s Preventative Maintenance Program. 2006 Consolidated Annual Action Plan - Amended
March 31, 2006 24
Funds are provided as grants to the homeowners to pay for cleanup and stabilization activities as prescribed by DENR’s regional lead specialists.
􀂃
The Agency will continue to count households with an elevated blood lead level ( greater than 10μg/ dL) as an eligible special needs household under the regular Urgent Repair Program ( URP). All households that are URP beneficiaries must be special needs households. Local health officials can refer such cases to local URP recipient organizations for assistance with Preventative Maintenance Program activities.
Office of Economic Opportunity
􀂃
Lead safe weatherization training will be provided to sub- recipient staff and subcontractors of the N. C. Weatherization Assistance Program to ensure the proper handling of situations involving lead hazards in dwellings receiving services.
2006 Consolidated Annual Action Plan - Amended
March 31, 2006 25
Descriptions of Programs
Below is a list of housing- related programs and services administered by the AIDS Care Unit; the Department of Commerce, Division of Community Assistance; the North Carolina Housing Finance Agency; and the Office of Economic Opportunity. For additional information on each Agency’s programs, contact the agency directly using the information given.
AIDS Care Unit
HIV/ STD Prevention and Care Branch
North Carolina Department of Health and Human Services
1902 Mail Service Center, Raleigh, North Carolina 27699- 1902
Phone 919.715.0136
www. schs. state. nc. us/ epi/ hiv
􀂃
Housing Opportunities for Persons with AIDS ( HOPWA)
This program, funded by the U. S. Department of Housing and Urban Development, provides funds to states and cities with the largest number of cases of HIV/ AIDS. The AIDS Care Unit administers the state entitlement grant for HOPWA, which provides services to 92 of the 100 counties in NC. Other entitlement communities include the Raleigh EMSA ( which includes Wake, Franklin and Johnston counties) and the Charlotte EMSA ( which includes Cabarrus, Gaston, Mecklenburg, Anson, York and Union counties). Funds are distributed to HIV Care Consortia, nonprofit housing and service organizations, local public housing authorities, and adult day/ family care home providers. The state HOPWA program funds the following eligible activities: tenant- based rental assistance; supportive services; operating costs ( dedicated housing facility); resource identification; housing information and short- term rent, mortgage and utility assistance.
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Ryan White HIV Care Program
This program provides funding to eight HIV Care Consortia ( to plan, develop, and assure the delivery of essential outpatient health and support services for persons with HIV) and sixteen Primary Medical/ Dental agencies ( to provide primary medical and/ or dental care to people living with HIV/ AIDS). In addition, these program funds, in conjunction with state dollars, an AIDS Drug Assistance Program ( ADAP) which provides life- sustaining medications to low- income North Carolinians diagnosed with HIV infection. Furthermore, the Ryan White HIV Care Program provides funds to the Minority AIDS Initiative ( MAI). This initiative is designed to re- connect minorities who are living with HIV/ AIDS and defined as “ lost to care” for less than 12 months to appropriate medical care and services consistent with established standards of care, including case management.
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Community Alternatives Program for Persons with AIDS ( CAP/ AIDS)
This program prevents the institutionalization of persons living with AIDS through the provision of home- and community- based services, which cost- effectively address client care needs while allowing the participants to remain in home and community settings.
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HIV Case Management Program ( HIV/ CMS)
This program assists eligible individuals living with HIV/ AIDS to prevent or alleviate social crises, which may threaten the quality of life. HIV/ CMS is a client- focused strategy for coordinating care that assesses a client’s need for specific health, psychological, and social services and facilitating access to services that will address those needs.
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Division of Community Assistance
Department of Commerce
4313 Mail Service Center
Raleigh, North Carolina 27699- 4313
Phone 919.733.2850
www. ncdca. org
Small Cities Community Development Block Grant Program:
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Community Revitalization Program ( CR)
This program provides funds to local governments to improve or develop residential areas for low- to- moderate income households in two subcategories: Concentrated Needs ( CN) and Revitalization Strategies ( RS). Grants for Concentrated Needs are primarily used for rehabilitation, water and sewer installation, streets, and drainage improvements, though other eligible activities are also allowed. Applications are accepted on a two- year funding cycle and all eligible applicants are rated and ranked through a competitive process. Awards of up to $ 700,000 are made on an annual basis from the ranked list of CN applicants. In 2006, projects will be awarded based on the highest rated remaining unfunded applications that were submitted in 2005. A system of regional allocation for distribution of funds in the CN category was implemented in 2005, and will be in place for the 2006 distribution. This regional allocation system will better ensure a level playing field for all applicants, regardless of location in the state, and allows for a greater diversity of activities.
The RS program is designed to provide grants to local governments to address multiple needs in a given community. Funds can be used for any CDBG- eligible activity as long as it is consistent with the overall strategy to help alleviate poverty in the designated area. Nine of the original ten communities that were chosen to receive RS funding in 2002 and have met their responsibilities for completion of activities in the first four years of the program will continue to receive funding through this program in 2006. One community’s program was a four- year project and will not receive funds in 2006. Eligible applicants were Tier 1 and Tier 2 Counties and nonentitlement municipal governments with a designated State Development Zone. The guidelines and application for the next round of RS grants is scheduled to be released in January 2006, with an application deadline of May 2006, and awards made in late summer 2006, subject to availability of 2006 funds. The projects in this second round of RS funding will be eligible to receive funds from 2006- 2011.
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Housing Development Program ( HD)
This program provides grants to local governments to support affordable housing projects. These projects create additional units of affordable housing through single- family developments or multifamily units, for low- and moderate- income households. Eligible uses of CDBG funds include installation of public infrastructure ( water, sewer streets, sidewalks, and drainage, on a case- by- case basis), the removal of hazardous material, acquisition of vacant land or vacant buildings by an eligible nonprofit, and certain rehabilitation activities ( on a case- by- case basis). Priority will go to rental housing in Tier 1 & Tier 2 counties, North Carolina Small- Cities- eligible State Development Zones, and 21st Century Communities. Grant amounts are $ 18,000 per unit for single- family projects and $ 6,000 per unit for multifamily projects, and are not to exceed a total of $ 250,000. A sub- category within Housing Development is DCA’s Individual Development Account ( IDA) program. Through this program participants are introduced into the mainstream financial system,
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provided credit and housing counseling and homebuyer and financial literacy, and receive match money for down payment assistance upon successful completion of the program.
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Scattered Site Housing Program ( SSH)
This program provides funds to local governments to address the most critical needs of families. Grants are made on a noncompetitive basis with $ 400,000 available to each county every three years. Funds are targeted to improve housing conditions of very- low income families. As lead agents, counties will receive funds by submitting a detailed plan, describing how funds will be distributed to meet housing priorities. These plans will involve all interested municipalities in the county. In 2006, the following counties are scheduled to receive Scattered Site Housing grants: Anson, Avery, Brunswick, Caldwell, Carteret, Catawba, Craven, Davidson, Duplin, Edgecombe, Forsyth, Graham, Granville, Greene, Hoke, Iredell, Jackson, Lenoir, Lincoln, McDowell, Moore, Pamlico, Perquimans, Pitt, Randolph, Rutherford, Stanly, Tyrrell, Union, Watauga, Wilson and Yadkin. In addition, the towns of Holly Springs and Linden are slated to receive SSH funds due to their eligibility to receive Small Cities State CDBG funds though each are located in an urban county ( Wake and Cumberland, respectively). Holly Springs is eligible for $ 100,000 of SSH funds in 2006 and Linden is eligible for $ 50,000.
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Infrastructure Hook- Up Program ( IF Hook- Up)
This program provides funds to local governments to address access to proper water and wastewater facilities among its low- to- moderate income residents. Local governments may apply for up to $ 75,000 to hook households to water and wastewater facilities in low- to- moderate income areas where need is great due to environmental health concerns, but residents cannot afford the tap fees to access the lines. These grants are issued on a first- come, first- serve, non- competitive basis. Counties or municipalities must submit a detailed plan mapping the area and households to be targeted, show that the lines homes are to be hooked to are appropriate, that the system can absorb the additional demand as well as demonstrate the financial feasibility of the utility.
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North Carolina Housing Finance Agency
P. O. Box 28066, Raleigh, North Carolina 27611- 8066
Phone 919.877.5700
www. nchfa. com
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Duke Power Home Energy Loan Program
This program provides funds to Duke Power customers whose incomes are below 80% of area median. Assistance is channeled through local governments, nonprofit organizations, and regional councils. Duke HELP can be only used for energy- efficient measures to owner- occupied housing and must be matched with other funds to comprehensively rehabilitate all units assisted.
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Home Protection Pilot Program
This program assists homeowners in select counties who are at risk of foreclosure due to job loss. It provides zero- interest loans of up to $ 20,000 over 18 months with a maximum repayment term of 15 yto such homeowners with the expected ability to repay the loan in the future. The program also provides funding for housing counseorganizations to assist those homeowners.
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Housing Credit Programs ( Federal and State)
These programs encourage owners to produce rental housing for households below 60% of the area median income by allowing a 15- year federal tax credit and a refundable state tax credit. Developments remain affordable for 30 years due to an extended use agreement. For both these programs, the amount of credit a project receives is a percentage of its eligible basis. The North Carolina Tax Reform Allocation Committee sets policy for the Federal Tax Credit program. Tax credits are awarded to nonprofit and for- profit developers through a competitive funding cycle; the preliminary application deadline is in January, and the full application is usually due in May.
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Individual Development Account Loan Pool
This program provides up to $ 2,000 to match the savings of low- income households working toward homeownership. Recipients are also are eligible for $ 20,000 gap financing from NCHFA. The program is operated through selected Housing Counseling Agencies.
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Key Program
This program is a partnership between NCHFA and the NC Department of Health and Human Services. It provides rental subsidies to low- income disabled tenants in properties that received federal Low Income Housing Tax Credits in 2004 or later. Eligible recipients must have income from a federal disability program and be referred by a designated Lead Agency. Lead Agencies are local service providers who have committed to coordinating services for recipients and have entered into a Memorandum of Understanding with a property owner.
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Lead Abatement Partnership Program ( LAPP)
This program assists low- income homeowners with lead- poisoned children. In cooperation with the North Carolina Departments of Environmental and Natural Resources and Health and Human Services, the North Carolina Housing Finance Agency provides technical assistance and financial assistance in the form of small grants or larger, interest- free, deferred payment loans to homeowners.
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Mortgage Credit Certificate ( MCC)
This program assists homebuyers with the purchase of new or existing homes by granting them a tax credit on their federal income taxes; it reduces the federal income tax liability for the homeowners. This leaves them with more disposable income; therefore, they are better able to qualify for a market- rate mortgage. Credits are awarded to individual households through participating lenders and are restricted to low- and moderate- income first- time homebuyers who are determined ineligible for the Agency’s low interest rate mortgage loan.
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Mortgage Revenue Bond Program and Down Payment Assistance Program
This program offers mortgages through participating lenders to first- time homebuyers with low to moderate incomes at an interest rate below the market rate. Buyers may purchase new or existing homes and may qualify also for HOME- funded second- mortgage downpayment assistance. The DAP program will utilize ADDI funding in addition to regular HOME funding. The MRB program is funded by the sale of tax- exempt bonds.
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New Homes Loan Pool Program
This program provides interest- free, deferred second- mortgage loans of up to $ 20,000 for the purchase of newly constructed homes. Loans are provided to the low- income homebuyers referred by nonprofit organizations, units of local government, and regional organizations. Targeting homebuyers whose incomes are less than 80% of area median income on a first- come, first- served basis, this program has an open cycle for accepting membership and project applications. Grant funding is also available to participant organizations to bring for- sale units to a higher level of energy efficiency.
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North Carolina Elderly Housing Rights and Consumer Protection Program
This program provides information for consumers on housing rights and consumer protection issues such as homeowner rights and tenant/ landlord fair housing rights. Program staff develops materials and trains advocates and service providers. The Agency also works with the Office of the Attorney General to provide training and certify high cost loan counselors, as requried by state statute.
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Rental Production Program
This program provides loans of up to $ 1 million per development ( this may be exceeded in some cases) for the production of rental housing, primarily targeting households below 50% of area median income.
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Rental Preservation Loan Program
This program provides below- market- rate loans to rehabilitate affordable apartments. It targets the rental developments that would benefit from capital improvements but do not qualify for the Agency’s other programs, which tend to be smaller properties in non- metropolitan areas. Eligible uses of the funds include the replacement of outdated major systems ( such as HVAC), and meeting federal accessibility requirements. Agency construction standards will apply.
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Reverse Mortgages for Elderly Homeowners
This program gives older homeowners a vehicle for converting equity in their homes to cash, by providing reverse mortgages insured by the Federal Home Administration ( FHA). Borrowers must be at least 62 years old and must participate in a mortgage counseling program offered by an
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March 31, 2006 30
approved reverse mortgage counselor. In North Carolina, the North Carolina Housing Finance Agency provides training and certifies reverse mortgage counselors, as required by state statute.
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Rural Opportunity Mortgage ( ROM) Program
This program allows the United States Department of Agriculture- Rural Development to originate and close Agency 30- year below- market, fixed rate mortgages in conjunction with the USDA’s Section 502 direct loans to help very- low- and low- income homebuyers.
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Self- Help Loan Pool Program
This program provides financing up to $ 15,000 per unit to self- help housing organizations. Mortgage loans at zero percent interest are provided to homebuyers who are usually below 50% of area median income. Grant funding is also available to participant organizations to bring the units they develop to a higher level of energy efficiency.
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Single- Family Rehabilitation Program
This program provides deferred, forgivable loans to home owners through regional agencies, units of local government, and nonprofit organizations. The purpose is to rehabilitate moderately deteriorated owner- occupied homes, primarily targeting elderly and disabled homeowners below 80% of area median income. All units are brought up to stringent energy and construction standards.
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Supportive Housing Development Program
This program provides loans of up to $ 500,000 per project for the development of emergency, transitional or permanent supportive housing. Assistance is targeted primarily to households below 30% of area median income with special needs. Eligible populations include homeless individuals and families, mentally ill, developmentally disabled, persons with addiction disorders, survivors of domestic violence, and persons with HIV/ AIDS. Eligible applicants are nonprofits and units of local government.
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Supportive Predevelopment Loan Program
This program provides predevelopment loans to nonprofit developers who are building supportive housing for low- income households with special needs. Funds may be used for architectural services, engineering work, and environmental reviews. Funding is open but limited by availability.
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Urgent Repair Program
This program provides grants to homeowners through nonprofit organizations, units of local government, and regional councils, to correct housing conditions that pose an imminent threat to life or safety of the household or cause an imminent threat to displacement. Assistance is targeted to homeowners with special needs earning below 30% of area median income. A Displacement Prevention Demonstration fund allows the Independent Living Program and local health departments to assist households facing displacement due to mobility limitations and lead paint poisoning.
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Office of Economic Opportunity
North Carolina Department of Health and Human Services
2013 Mail Service Center, Raleigh, North Carolina 27699- 2013
Phone 919.715.5850
www. dhhs. state. nc. us/ oeo/
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Community Services Block Grant Program ( CSBG)
This program is funded by the U. S. Department of Health and Human Services. It awards funds to community action agencies and limited purpose agencies, on a formula basis, for anti- poverty activities including eviction and foreclosure prevention.
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Emergency Shelter Grants Program ( ESG)
This program provides grants for emergency shelter operations, essential services, and homeless prevention activities. It is funded by the U. S. Department of Housing and Urban Development and administered by the Office of Economic Opportunity. Funds are awarded to nonprofit organizations and/ or units of local government on a pro- rata basis, and each grant recipient must provide a one- to- one match of funds.
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Weatherization Assistance Program ( WAP)
This program provides funds to local community action agencies and other private, nonprofit agencies to install energy conservation measures in homes. This program serves primarily elderly and disabled households with incomes below 150% of the poverty level. This program is funded by the U. S. Department of Energy and the North Carolina Department of Health and Human Services – Division of Social Service Low Income Home Energy Assistance Program Block Grant.
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Heating Air Repair Replacement Program ( HARRP)
This program provides funds to local community action agencies to replace or repair inefficient or unsafe heating system for low- income elderly individuals, disabled individuals, and low- income families with small children whose incomes do not exceed 150% of the poverty level. Eligible elderly and disabled homeowners can have cooling system repaired or replaced. The program is funded by the North Carolina Department of Health and Human Services – Division of Social Services through the Low Income Home Energy Assistance Program Block Grant.
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Community Development Block Grant ( CDBG)
2006 Program Report
The Department of Commerce oversees the comprehensive economic development strategies that are carried out by state governmental agencies and its allies. Much of the Community Development Block Grant ( CDBG) program is oriented toward two goals contained in the department’s strategic plan: 1) Building Stronger Communities and 2) Creating Jobs through Sustainable Economic Development. This plan is organized to fulfill the department’s mission statement: “ To improve the economic well- being and quality of life of all North Carolinians”.
For 2006, the first year of the five- year strategy of the NC Consolidated Plan for 2006- 2010, an over- arching theme of the state’s investment of federal resources focuses on stimulating development of distressed rural communities and portions of urban areas that have not enjoyed the positive growth that much of the state has experienced.
State Community Development Priorities For 2006
Major priorities for 2006 include the following:
Targeted Investments
Targeting state investments on specific high- impact outcomes in distressed rural areas and high priority small cities, the Department of Commerce will continue to focus on providing flexible funding to Tier 1 and Tier 2 Counties and municipal governments with designated State Development Zones ( SDZ). In addition, the 21st Century Communities initiative will provide flexible targeted funds to local governments in four additional counties that were selected based on their economic distress to make them more competitive in the global economy. The designees for the third round of this initiative that were announced in the summer of 2005 and will be eligible for priority status in 2006 are Burke, Hyde, Montgomery, and Sampson counties. The Department will also target funds to address CDBG- eligible priorities coming out of EDA- funded Comprehensive Economic Development Strategies ( CEDS) in four regions of the state that have experienced severe economic downturns and job losses.
Investment Plan
In 2006, North Carolina expects to receive approximately $ 45,000,000 in CDBG funds. In addition, other funds may become available as a result of additional HUD allocations, recapture, reversion, or carry- over of prior year funds and program income. The state may make grants to non- entitlement governments statewide. Eligible applicants include all counties, except for Wake and Cumberland ( and their municipalities, though Holly Springs in Wake and Linden in Cumberland are eligible for CDBG funds from DCA), and municipalities in the other 98 North Carolina counties, except the twenty- three entitlement cities that receive funds directly from the US Department of Housing and Urban Development ( HUD). Applicants must meet thresholds and requirements for expenditure of funds from prior CDBG projects.
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Investment Plan – 2006 Distribution
Community Revitalization
$ 13,559,635
Concentrated Needs
($ 10,059,635)
Revitalization Strategies
($ 3,500,000)
Scattered Site
$ 13,257,824
Infrastructure
$ 5,161,410
General Improvements Wastewater Connections
($ 4,161,410)
($ 1,000,000)
Housing Development
$ 2,007,701
Rental and Homeowner Development & Tax Credit Projects
( 1,807,701)
Individual Development Account
($ 200,000)
Economic Development
$ 8,748,152
Urgent Needs/ Contingencies
$ 1,006,037
Projected Program Income*
$ 300,000*
Administration
$ 1,003,933
Technical Assistance
$ 451,967
2006 HUD Grant to State
$ 45,196,659
Note: The original plan that this budget is based upon was adopted by the North Carolina General Assembly in the 2005- 06 budget as part of SB 622.
* The Capacity Building category will be funded through projected program income receipts in 2006. These will be available to the Capacity Building category as available.
Method Of Distributing Funds
In 2006, projects will be awarded from several funding sources:
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New 2006 funds according to the investment plan above.
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Funds from the 2005 or earlier disbursements recaptured or de- obligated from prior Community Revitalization, Infrastructure, Scattered Site, demonstration category grants, funds recaptured from Economic Development projects awarded prior to May 1992, and funds not otherwise distributed from the above categories by June 30, 2006 may be awarded to qualifying applications in either Concentrated Needs, Infrastructure, Urgent Needs, the Rural Center Partnership, or the proposed Microenterprise IDA demonstration as of July 1, 2006.
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Any 2006 Scattered Site funds not awarded by October 1, 2006 may be awarded to qualifying applications in either Concentrated Needs, Infrastructure, Urgent Needs, , the Rural Center Partnership, the proposed Microenterprise IDA demonstration, or as supplemental Scattered Site Housing funds to previous qualified applicants ( see p. 30 for details).
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Any recaptured or de- obligated Housing Development or Individual Development Account funds from previous disbursements, and any 2006 Housing Development funds not awarded by December 31, 2006, will be available for Individual Development Account grants, if needed. If not, funds may be awarded to qualifying applications in Concentrated Needs, Infrastructure, or Urgent Needs.
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Any non- revolving loan Economic Development funds from previous disbursements not awarded by October 1, 2005 and any 2006 Economic Development funds not awarded by
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March 31, 2006 34
October 1, 2006 may be distributed to projects in the Urban Redevelopment program, if needed. Any 2006 non- revolving loan Economic Development or Urban Redevelopment funds not awarded by December 31, 2006 may be used to provide funds for economic development activities through non- profit agencies in partnership with local governments. If any funds remain at the conclusion of this cycle, funds may be awarded to qualifying applications in either Concentrated Needs or Infrastructure.
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Program income received in 2006 will be available for the Capacity Building category on an as available basis. Any unused 2006 program income not distributed as of December 31, 2006 may be awarded to qualifying applications in either Concentrated Needs or Infrastructure.
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The partnership with the North Carolina Rural Economic Development Center for Economic Development projects, as directed by the North Carolina General Assembly in SB 622, will be funded from de- obligated funds.
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Funds not awarded in Urgent Needs/ Contingency may be awarded to qualifying applications in either Concentrated Needs or Infrastructure.
Program Categories for 2006
Community Revitalization ( CR) grants are administered by DCA to improve or develop residential areas for low and moderate income households in two subcategories: Concentrated Needs with maximum grants of $ 700,000 and Revitalization Strategies with a $ 350,000 maximum grant per year for up to 5 years according to an approved strategic plan.
Awards for Concentrated Needs ( CN) in 2006 will be made to the highest ranking communities among those applications that were submitted in Fall 2004 in a competitive process but not funded in 2005. As part of H. B. 1414, the General Assembly in 2004 approved a regional distribution plan for the Concentrated Needs category to be applied to the 2005 program year and all subsequent years. This regional distribution plan divides the state into four regions and assigns each region a percentage of the funds dedicated to the Concentrated Needs category annually. Funds not allocated in one region may be reallocated to another if there are an insufficient number of qualified applicants at the end of the program year. Concentrated Needs applicants may request up to 15% for local options to undertake any of the following activities in the applicant’s jurisdiction:
•
Scattered Site Housing Rehabilitation
•
Emergency Repairs
•
Installation of on- site water or wastewater system
The Revitalization Strategies ( RS) program is designed to provide grants to local governments to address multiple needs in high poverty neighborhoods. Grants in this category will continue to be made in 2006 to nine of the original ten grantees awarded in 2002 ( one program was a four- year program slated to end in 2005) to provide long- term funding for their multi- year revitalization. In 2006, technical assistance will be provided those grantees. Eligible applicants were Tier 1 and Tier 2 Counties and non- entitlement municipal governments with a designated State Development Zone.
In January 2006 guidelines and the application for the next round of RS grantees may be released with a Request for Proposals. The applications will be rated in the summer of 2006, and small planning grants will be issued, subject to funding availability, using 2006 RS funds to the newly awarded applicants in the late summer or fall of 2006. Full funding for these applicants will be committed in the 2007 program year, also subject to funding availability.
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Scattered Site Housing ( SSH) grants will be made to local county governments on a rotating basis to address housing needs of very low income families throughout the county. County governments can receive $ 400,000 every 3 years with funds targeted to very low- income homeowners for rehabilitation or relocation purposes. Counties submit a detailed plan that includes all interested municipalities within the county describing how funds will be distributed to meet housing needs. Scattered Site Housing applicants may request that up to ten percent of funds be set aside for local option to undertake emergency repairs or repair/ replace on- site well and/ or septic systems.
Those counties that accomplish their goals and exhaust funds within two years are eligible to receive up to an additional $ 100,000 to continue activities allowed in the SSH category.
In 2006, the following counties are scheduled to receive Scattered Site Housing grants: Anson, Avery, Brunswick, Caldwell, Carteret, Catawba, Craven, Davidson, Duplin, Edgecombe, Forsyth, Graham, Granville, Greene, Hoke, Iredell, Jackson, Lenoir, Lincoln, McDowell, Moore, Pamlico, Perquimans, Pitt, Randolph, Rutherford, Stanly, Tyrrell, Union, Watauga, Wilson and Yadkin. In addition, the towns of Holly Springs and Linden are slated to receive SSH funds due to their eligibility to receive Small Cities State CDBG funds though each are located in an urban county ( Wake and Cumberland, respectively). Holly Springs is eligible for $ 100,000 of SSH funds in 2006 and Linden is eligible for $ 50,000.
Infrastructure ( IF) An estimated total of $ 5.14 million will be available in the Infrastructure category for 2006. Eligible local governments may obtain grants of up to $ 750,000 to provide new infrastructure ( public water and/ or public sewer) to existing residential neighborhoods to correct problems that pose a severe health or environmental risk. In an effort to address needs in 21st Centuries Communities, half of the total IF funds will be available to local governments in the 21st Century Communities on an open- ended basis. The other half of the funds will be available to all eligible local governments. DCA plans to change its method of application funds for the IF category for 2006. That method has yet to be determined.
For the 2006 Infrastructure category, DCA will give priority for funding to projects as listed below:
21st Century Communities Pool
Priority will be given first to projects that propose a regional solution to a problem and are consistent with a county plan, and second to water projects that propose to alleviate the most serious needs.
Regular Pool
Funding priorities will include measures to distribute grants to highly qualified eligible applicants in each region, projects that propose a regional solution to the problem, and water projects that propose to alleviate the most serious needs. Local governments will be required to display a high state of readiness in the application for IF funds. Projects should be ready to begin as soon as possible after receiving CDBG funds.
Water/ Wastewater Connection Program
In 2006, grants will continue to be made available to eligible local governments applying on a first- come, first- serve basis for the Water/ Wastewater Connection Program. This program constitutes $ 1 million of the total infrastructure allotment. Eligible activities include costs and fees associated with connecting lower income families to existing water or sewer lines.
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Economic Development ( ED) This category will continue the policy adopted by the North Carolina General Assembly in the William S. Lee Quality Jobs and Business Expansion Act of 1996, as amended, of providing higher levels of funding to the most economically distressed areas of the state. The following considerations will be included for job creation and retention projects during the 2006 program year: 60% of the jobs created or retained in a project must benefit persons qualifying as prior low and moderate income ( LMI). Funding for Economic Development projects is based on the number of jobs to be created and the level of distress in the community applying for the funds. Areas with higher distress rankings, based on the North Carolina Tier rating system, are eligible for more funds per job created. Additional CDBG funding per job is available for projects proposed to be located in a State Development Zone or a 21st Century Communities as designated by the Secretary of Commerce.
CDBG funds are granted to local governments for various types of infrastructure improvements to assist business expansion or retention. A local funding match of at least one dollar for every three CDBG dollars is required except for designated Tier 1 counties and 21st Century Counties. In a secondary priority to infrastructure projects and at the discretion of the Secretary of Commerce, direct financial assistance to private companies is available as loans to be negotiated by the local government applicant and a participating North Carolina commercial bank at a level not to exceed 50% of the bank loan. Repayment of the loan by the private company becomes program income to the State and is deposited into a CDBG economic development revolving loan fund ( RLF). Funding from the RLF is available only as loans.
For program year 2006, loans for industrial shell buildings are available from the RLF based on the projected number of jobs to be created and the level of distress in the community. These loans will be at a 2% interest rate with a maximum term of 5 years. A dollar for dollar match is required by the local government applicant for a industrial shell building. Also, up to $ 500,000 will be set aside in the RLF for counties in Tiers 1- 3 as loans to assist with the costs associated with certifying industrial sites. These grants are repaid after the certified site is sold or within five years of award.
Entrepreneurial Incubation Grants
In partnership with the Rural Economic Development Center, the Department will award up to $ 2,250,000 in demonstration grants in very distressed rural areas to address critical infrastructure and entrepreneurial needs and to provide small business assistance. Grant recipients will be selected by a competitive process designed jointly by the Rural Center and the Department.
Urban Redevelopment Grants
Funded from 2005 Economic Development funds that have not been awarded by October 1, 2005, as well as 2006 funds not awarded as of October 1, 2006, Urban Redevelopment Grants will encourage increased economic activity in areas that have been designated as “ Redevelopment Areas” or “ Rehabilitation, Conservation, and Reconditioning Areas” under North Carolina Redevelopment Law. CDBG funds will be provided to municipalities to remove obstacles to private investment in the area by correcting code or safety violations or for historic preservation of deteriorated buildings, by improving infrastructure, by acquiring and clearing blighted property, and by addressing other conditions that contribute to the deterioration or under- investment in the area. Eligible projects must include commitments for the private investment that will be generated by the activities to be carried out with CDBG funds.
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Microenterprise IDA Grants
As part of its partnership with the North Carolina Rural Economic Development Center, DCA will investigate the feasibility of using CDBG funds to help small businesses through an Individual Development Account program demonstration. Through this program, match funds would be provided for new or expanding businesses to purchase machinery, equipment, or other necessary capital. The maximum proposed grant amount is $ 50,000 per project. The Microenterprise IDA program would be funded in 2006 by de- obligated funds from previous years.
Housing Development ( HD) grants administered by DCA will focus on the creation of multi- unit rental developments and provide support for homeownership activities for low and moderate- income families. Local governments in Tier 1 and Tier 2 Counties, municipalities that have designated SDZs, and 21st Century communities will receive preference for HD funds. The HD allocation will be divided into two funding pools: Homeownership and Rental Housing.
Rental Housing ($ 1,100,000)
Multi- unit Development
Funds will be provided for rental developments. Eligible uses of CDBG funds include installation of public infrastructure ( water and sewer lines are automatically eligible for funding; streets, sidewalks and drainage may be funded on a case by case basis), the removal of hazardous material, acquisition of vacant land ( by an eligible non- profit) or vacant historic buildings ( by an eligible non- profit or for- profit developer), and certain rehabilitation activities ( on a case- by- case basis). The maximum grant is $ 250,000 with a $ 6,000 per unit maximum.
Homeownership ($ 900,000)
Single- family Housing
Funds will be available for assisting single- family housing developments up to $ 250,000. Eligible uses of CDBG funds include installation of public infrastructure ( water, sewer, streets, sidewalks and drainage), the removal of hazardous material, or vacant land acquisition by an eligible non- profit. There is an $ 18,000 per unit assistance maximum for single- family projects.
Individual Development Account ( IDA)
These funds provide match for down payment assistance or closing costs to qualified first- time low and moderate- income homebuyers. The maximum funding is $ 70,000 per project. IDAs are funded in 2006 by a $ 200,000 set aside from the HD line item and from de- obligated HD funds from previous years.
Urgent Needs ( UN) grants are to be used to help meet community development needs that ( 1) have arisen during the preceding 18- month period, ( 2) pose an imminent threat to the health or safety of the community, ( 3) the applicant does not have sufficient local resources, ( 4) where other financial resources are not available to meet such needs. Due diligence will be conducted to determine whether projects meet the above 4- part test. Urgent Needs grants will be available on an as needed basis, or until funds are exhausted. Projects will generally be funded on first request basis. If more requests are made for funding than is currently available, the Secretary of Commerce may choose to fund the project that resolves the more serious situation, regardless of the order of submission of requests.
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Contingency grants may fund eligible projects submitted in any category.
Capacity Building ( CB) grants of up to $ 75,000 will be made available to local governments to assist non- profit organizations develop appropriate and competitive CDBG projects and gain functional capacity in a new and different role. The total amount of funds available for this program will not exceed $ 600,000. Funds are available on a first- come- first- serve basis with priority going to local governments from 21st Century Communities, Tier 1/ Tier 2 Counties, and designated State Development Zones. A Capacity Building grant is expected to result in a future application in one of the CDBG categories. In 2006, funds for Capacity Building grants will be made available from program income.
The NC Development Loan Fund ( NCDLF), also known as the Section 108 Loan Guarantee Program, pledges future CDBG allocations as security for loans in accordance with the HUD Section 108 Loan Guarantee Program Final Rule published November 6, 1991. Applications may be submitted at any time during the year, as long as funds are available from HUD.
The maximum loan is $ 5 million. The state may enter into loan guarantee agreements in support of projects sponsored by individual local governments with a minimum loan of $ 750,000 or in support of loan pools of two or more projects supported by local governments with a minimum of $ 250,000. Projects must meet minimum criteria with respect to equity, collateral and underwriting standards.
The Department of Commerce is currently evaluating the Section 108 program to see if changes should be recommended. Recommendations, if any are made, for changes to the program will be released in 2006. This program may be activated with one or more regional loan pools to meet demand for funds.
The Community Development Plan Pilot Program may provide funds of up to $ 20,000 for local governments to develop comprehensive community development plans. This program would be run as a demonstration in Spring 2006. These plans would be applicable to all CDBG grants and would help direct local governments in their community development efforts.
Technical Assistance ( TA) funds will concentrate on developing the professional skills and capabilities of local community development grant administrators. In consultation with the North Carolina League of Municipalities, the North Carolina Association of County Commissioners, and the North Carolina Community Development Association, the Commerce Department implemented a professional certificate program for grant administrators in 2003. Participants that pass an exam will receive a certificate of completion. Possession of this professional certificate would assure local governments that the people they engage to administer community development grants meet and maintain high professional standards of knowledge, ethics and competency. DCA is working with the University of North Carolina at Chapel Hill’s School of Government to determine the demand for a professional development academy in 2006; one may be offered for local government staff and their contract administrators if there is sufficient demand to warrant the workshop.
Monitoring Standards
The Department of Commerce must insure that grantees under the CDBG Program carry out their projects in accordance with Federal and State statutory and regulatory requirements set forth in the grant contract executed between the State and the grantee. The Department of Commerce will provide maximum feasible delegation of responsibility and authority to grantees under the CDBG
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program. The Department of Commerce’s monitoring of CDBG grantees will be conducted in a positive, assistance- oriented manner. Whenever possible, deficiencies will be rectified through constructive discussion, negotiation and assistance, and in a manner which preserves local discretion.
The Department of Commerce will conduct two basic types of monitoring: off- site, or “ desk” monitoring, and onsite monitoring. Desk monitoring is an ongoing process in which the project administrator responsible for overseeing the grantee’s project uses all available information to review the grantee’s performance in carrying out the approved project. Onsite monitoring is a structured review conducted by the DCA grant representative at the location where the project activities are being carried out and/ or where project records are being maintained. Checklists are utilized to ensure that all issues are addressed. Documentation is gathered in order to support conclusions in response to the grantee. The number of times a project is monitored varies upon the issues that arise during the desk and onsite monitoring.
In accordance with CPD Notice 03- 09, the Consolidated Plan partners, represented by the Division of Community Assistance as the lead agency, have been working towards a method of quantifiable performance measures to assess the accomplishments of all four Consolidated Plan programs. The Council of State Community Development Agencies ( COSCDA) has been working with the federal Office of Budget and Management ( OMB), the United States Department of Housing and Urban Development ( HUD), and other stakeholders to develop ideal performance measures that are specific and measurable while still flexible enough to be applied universally across the country. DCA staff has served on an internal working group within COSCDA to provide feedback during the formulation process for these performance measures. Furthermore, DCA staff members have, on behalf of the Consolidated Plan partners, attended HUD- sponsored workshops in the summer of 2005 on the performance measures framework. DCA staff plans to continue participating in this dialogue with HUD and working to meet performance measure requirements during the 2006 program year. It is the intent and plan on all four North Carolina state Consolidated Plan partners to utilize the uniform performance measures once they are adopted and released by HUD and OMB.
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Emergency Shelter Grants ( ESG) Program
The purpose of the ESG Program is to improve the quality of existing emergency shelters for the homeless, to assist with the cost of operating such shelters, to provide essential social services to the homeless and to conduct homelessness prevention activities. North Carolina’s ESG Program is administered by the Office of Economic Opportunity ( OEO), NC Department of Health and Human Services ( DHHS).
Program Resources
It is anticipated that the State of North Carolina will receive a total ESG allocation of $ 2.4 million for the period of January 1, 2006 – December 31, 2006. The State of North Carolina will distribute these funds to eligible nonprofit organizations and units of local government during its 2006 fiscal year beginning July 1, 2006 and ending June 30, 2007. Based on the performance of the State’s FY 2005 ESG contractors, it is anticipated that 92% of the State’s FY 2006 ESG funds will be used to pay operation costs of funded homeless facilities, 6% will be used by contractors to deliver essential services to clients and 2% will be used to conduct homeless prevention activities. North Carolina will utilize the 5% administrative set- aside allowed under program regulations to pay for a staff person responsible for coordinating and monitoring ESG Program activities statewide and to cover other non- personnel costs incurred such as travel, printing, office space, equipment, and supplies.
No program income will be earned through the operation of the ESG Program. As required by federal ESG program regulations, any organization or unit of local government receiving an award under the ESG Program must provide an equal amount of funds from one or more of the sources listed below.
1)
the value of any donated material or building ( using the current retail or fair market value of the donated item)
2)
the value of any lease on a building ( if owned); any salary paid to staff in carrying out the program
3)
time and services contributed by volunteers through their participation in organization programs for homeless people valued at $ 5.00 per hour. Volunteer services of a professional nature ( i. e., health professionals, etc.) may be claimed at a higher rate as long as documentation is provided that the rate claimed is comparable to normal compensation for that profession.
4)
funds received for the period of grant funding from private foundations, charitable organizations, churches, local or state government programs or private individuals for support of the homeless facility or programs for the facility residents or clients.
Eligible Program Activities
Funds allocated to North Carolina by the U. S. Department of Housing and Urban Development ( HUD) are awarded to units of local governments and public or private nonprofit organizations. Funds are made available statewide.
Eligible costs under Operations include rent, utility costs, communications, equipment, contractual services, minor building maintenance and repair, supplies and materials, and administrative salaries and fringe benefits. Contractors may also include administrative salaries and fringe benefits as costs under Operations but must limit such costs to 10% of their total ESG award. Appropriate time 2006 Consolidated Annual Action Plan - Amended
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records must be maintained for any employee whose salary and/ or fringe benefits are paid with ESG funds.
Eligible costs under Essential Services include housing referral, medical and psychological counseling, nutritional counseling, employment training and counseling, substance abuse treatment and counseling, child care assistance, client transportation and information and referral. Salaries and fringe benefits of personnel who deliver direct services to clients may also be included as an Essential Services expense. Costs charged to Essential Services must total no more than 30% of the contractor’s total ESG award. Appropriate time records must be maintained for any employee whose salary and/ or fringe benefits are paid with ESG funds. Written contracts must be approved in advance and maintained on file for services purchased by the applicant agency with ESG funds.
Homeless Prevention activities are also eligible for ESG funding. Costs of such activities may not total over 30% of the contractor’s total ESG award. Prevention activities eligible for funding include security deposits, first and last month render payments, payments to prevent eviction or foreclosure, utility deposits or delinquent utility payments. Contractors are required to maintain written documentation of the homelessness or impending homelessness of the persons who receive homeless prevention funds.
Based upon the number of unduplicated individuals served in SFY 2004 ( July 1, 2004 – June 30, 2005) by State ESG contractors, it is anticipated that over 45,000 homeless people in the state will be served with North Carolina ESG funds during the period of July 1, 2006 – June 30, 2007.
Ineligible Program Activities
The State’s ESG Program does not fund construction, renovation or rehabilitation of facilities for the homeless although these activities are allowed under federal program regulations. This decision was made due to two factors. First, the limited amount of ESG funding available combined with the high costs of construction, renovation and rehabilitation would mean that a very limited number of contractors could be assisted through the program. Second, North Carolina ESG contractors have consistently stressed the need for funding to assist with the costs of operating existing shelters, providing client services and conducting homeless prevention activities.
Distribution Methods
North Carolina’s process for distributing ESG funding is non- competitive. Pre- applications for funding will be distributed to previous ESG contractors ( 100+), county managers ( 100), community action agencies ( 43) and other interested agencies, organizations and individuals ( 30– 50) in January of 2005. Pre- applications are posted on the OEO website ( www. oeo. dhhs. state. nc. us).
Pre- applications are used to determine an applicant’s eligibility for ESG funding according to set criteria. An eligible applicant must:
•
document its process for verifying that clients served meet the HUD definition of “ homeless”
•
operate the emergency and/ or transitional shelter facility for which funding is requested for at least one year prior to the date of application;
•
operate the emergency and/ or transitional facility for which funds are requested for a minimum of six full months out of the year;
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•
operate a safe and sanitary facility which:
- if a 24 hour or Night Only facility, has an average daily occupancy ( ADO) of at least six homeless persons per night; or
- if a Day Only facility, has an APSD ( average number of persons served daily) of at least 30 persons per day; and, provides one or more of the essential services defined by the U. S. Department of Housing and Urban Development.
•
have an established accounting system that provides for maintenance of ESG funds in accordance with OMB Circulars A- 110 and A- 122;
•
have a voluntary board of directors of at least five members;
•
have the ability to expend ESG funds budgeted for Operations and/ or Services within 365 days and ESG funds budgeted for Homeless Prevention within 180 days;
•
have acceptable resources to match the ESG funding received;
•
involve, to the maximum extent practicable, homeless persons in maintaining and operating facilities assisted under the ESG Program; and,
•
in the case of a private, nonprofit organization, have the endorsement of the unit of local government in the community in which the emergency or transitional shelter is located.
Program staff will review pre- applications in February of 2006. Those applicants determined eligible receive an application package in mid March of 2006. Applicants will be notified of the funding amount for which they may apply in the cover letter that accompanies their application package. Factors considered when determining the funding amount for each applicant include the type of facility( ies), which the applicant operates, the average daily occupancy of the applicant’s facility( ies), the total amount of funding available, and the total number of applicants approved for program funding. Application forms are posted on the OEO website ( www. oeo. dhhs. state. nc. us) for easy access by approved applicants.
A contractor training session will be held in April of 2006. During this session, applicant organizations will receive training in the completion of the program’s application package, financial reporting requirements and client data collection. Organizations approved to apply for ESG funding for the first time will be required to attend this session as a condition of final funding approval.
Completed ESG applications must be returned to OEO in May of 2006. Applications will be reviewed for completeness and additional information will be requested from applicants if needed. Once applications are approved and the agreement between the NC Department of Health and Human Services and the U. S. Department of Housing and Urban Development is in place, contracts are executed. The contract specifies the responsibilities of the contractor and the State, sets forth the activities to be performed utilizing ESG funding, includes an approved budget for such activities and documents the availability of matching funds. Contract execution will be completed no later than June 30, 2006. The State ESG Program year coincides with the State’s fiscal year of July 1 – June 30. Applicants may request reimbursement of their ESG expenses monthly by submitting Financial Status Reports to the Office of Economic Opportunity. Funding advances are not allowed.
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Program Evaluation and Monitoring
All FY 2006 ESG contractors will be subject to on- going monitoring throughout the term of the grant. The primary methods of monitoring will include:
•
Review of mid- year and end- of- year contractor performance reports
•
Review of contractor monthly financial status reports
•
Periodic on- site monitoring, including review of randomly- selected case files; and
•
On- going telephone contact with contractor staff
All ESG contractors will be required to submit mid- year and end- of- year performance reports to the Office of Economic Opportunity ( OEO). These performance reports detail the unduplicated number and characteristics of clients served by contractors during the respective reporting period. They also provide OEO with information regarding the causes of homelessness reported by program clients and, if applicable, the types of services delivered to clients by contractors. Program staff review all submitted reports for accuracy and to assure that contractors are meeting program requirements regarding average daily occupancy, service delivery and verification of client homelessness. Data collected from these individual contractor performance reports is compiled into program mid- year and end- of- the year reports. These reports are distributed to ESG contractors, the North Carolina State Office of the Department of Housing and Urban Development, members of the Interagency Council for Coordinating Homeless Programs ( ICCHP), the NC Department of Health and Human Services and, upon request, to other state agencies, nonprofit organizations and the general public.
On- site monitoring visits will be conducted by program staff to selected contractors throughout the program year. During these visits contractor program operations will be observed and facilities will be toured. OEO staff will review records of program expenditures to determine that all funds are being spent according to the budget approved by OEO. Randomly- selected client files will be examined to assure that eligible persons are being served and that one or more essential services are being provided to clients as required by program regulations. Contractor bylaws, board minutes, and personnel policies will be reviewed to assure that the grantee is operating properly and in compliance with all federal regulations. The program plans to monitor 10% to 15% of ESG contractors on site during 2006.
Priority for on- site monitoring is given by OEO to:
•
contractors receiving ESG funds for the first time,
•
contractors with fiscal, management, and/ or service delivery problems identified by program staff through review of grantee reports;
•
contractors for which complaints regarding their fiscal, management or service delivery performance have been received by OEO from clients, staff, volunteers and/ or the general public.
Another aspect of program monitoring is frequent telephone conversations between program staff and the grantee programs throughout the grant period. Contractors call program staff throughout the year with questions about ESG regulations, program changes, grant requirements and other issues regarding their programs. Program staff also initiates telephone calls to contractors to question information contained in monthly requests for reimbursement or to investigate reports received regarding the grantee’s performance.
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Geographic Distribution
ESG funds are made available statewide. In the State’s 2006 Program year ( July 1, 2006 – June 30, 2007), it is anticipated that ESG funds will be distributed to over 100 nonprofit organizations and three units of local government operating over 140 emergency and/ or transitional facilities in at least half of the State’s 100 counties. 2006 Consolidated Annual Action Plan - Amended
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HOME Investment Partnerships ( HOME) Program
In 2006 North Carolina expects to receive an allocation of approximately $ 20,000,000 of federal HOME Investment Partnership Program funds, based on the previous year's allocation. State- appropriated matching funds of $ 1,750,945 will also be available for the 2006 program year. Ten percent of the 2006 HOME allocation and program income ( approximately $ 2,000,000) will be reserved for administration. The state will also receive $ 680,000 from the American Dream Downpayment Initiative ( ADDI).
Administered by the North Carolina Housing Finance Agency, the HOME Program will provide financing to nonprofit housing organizations, for- profit developers, lead regional organizations and lo